Hot topics close

Qantas to Pay $79 Million For Selling Tickets on Canceled Flights

Qantas to Pay 79 Million For Selling Tickets on Canceled Flights
Qantas, Australia’s national carrier, apologized and said it would pay a fine and compensation to settle a suit brought by a consumer watchdog.
  • U.S.
  • World
  • Business
  • Arts
  • Lifestyle
  • Opinion
  • Audio
  • Games
  • Cooking
  • Wirecutter
  • The Athletic
SKIP ADVERTISEMENT

Supported by

SKIP ADVERTISEMENT

Airline Agrees to Pay $79 Million After Selling Tickets for Canceled Flights

Qantas, Australia’s national carrier, apologized and said it would pay a fine and compensation to settle a suit brought by a consumer watchdog.

Listen to this article · 2:23 min Learn more
  • Share full article
Three parked jets can be seen through windows in an airport.
Qantas planes at Melbourne Airport in Australia.Credit...Abigail Varney for The New York Times
Jin Yu Young
May 6, 2024Updated 3:01 a.m. ET

Qantas, Australia’s national airline, said on Monday that it had reached a deal with the country’s consumer watchdog to pay the equivalent of $79 million for selling thousands of tickets to flights that it had already canceled.

The airline said in a statement that the payments, totaling 120 million Australian dollars, would resolve a lawsuit that the Australian Competition and Consumer Commission filed against Qantas over the issue last year.The commission accused the airline of advertising and selling tickets for more than 8,000 canceled flights from May 2021 through July 2022.

The commission said Qantas had known that the flights would never take off, and that tickets remained available for an average of over two weeks after the flights were canceled— in some cases, for as long as 47 days.

Qantas said it expected to pay 20 million Australian dollars in compensation to more than 86,000 of its customers, as well as a fine of 100 million dollars, subject to court approval.

“We know many of our customers were affected by our failure to provide cancellation notifications in a timely manner, and we are sincerely sorry,” said the carrier’s chief executive, Vanessa Husdon.

“We have since updated our processes and are investing in new technology across the Qantas Group to ensure this doesn’t happen again,” she said.

Gina Cass-Gottlieb, the consumer watchdog’s chairwoman, said the agency was “pleased to have secured these admissions by Qantas that it misled its customers, and its agreement that a very significant penalty is required as a result of this conduct.”

The airline has had a rocky few years. While it bills itself as “the spirit of Australia,” its customers there have complained about unreliable flights and high ticket prices. The airline has also taken flack for giving large paychecks to its board and its previous chief executive, after what a court called its illegal layoffs of 1,700 baggage handlers.

In the airline’s statement Monday, Ms. Hudson said the resolution of the suit over the canceled flights “represents another important step forward as we work towards restoring confidence in the national carrier.”

Jin Yu Young reports on South Korea, the Asia Pacific region and global breaking news from Seoul. More about Jin Yu Young

  • Share full article
SKIP ADVERTISEMENT
Similar news
News Archive
  • Gib vs Slim
    Gib vs Slim
    Gib vs Slim net worth: How Misfits stars stack up ahead of Qatar ...
    28 Nov 2024
    1
  • Cadbury
    Cadbury
    Cadbury admits 'last resort' change to chocolate bar
    3 Nov 2024
    44
  • PlayStation Move
    PlayStation Move
    December's Free PS Plus Games: Titanfall 2 and Monster Energy Supercross — The Official Videogame
    27 Nov 2019
    2
  • Aldi online
    Aldi online
    Aldi sells out of Kevin the Carrot Christmas toys as thousands wait in online queues
    15 Nov 2020
    13
  • NASDAQFSV
    NASDAQ:FSV
    Ajo LP Has $9.59 Million Stock Holdings in FirstService Corp (NASDAQ:FSV)
    30 Jun 2019
    2
  • Amanda Cronin
    Amanda Cronin
    Who is Amanda Cronin’s ex-husband Mark Daeche?...
    15 Feb 2022
    3