Qantas Customers Urged to Check Emails for $105 Million Settlement Offer

Qantas customers are being warned not to ignore emails and text messages offering access to a multi-million-dollar settlement — even if they appear to be a scam.

More than one million customers have started to receive emails and text messages explaining how they can apply for a share of a $105 million settlement following a class action against the airline over COVID-19 flight credits.

It was alleged Qantas breached contractual ⁠obligations by failing to provide refunds for cancelled flights during the pandemic.

Eligible customers are expected to receive a minimum payment of $50, although some payments could be significantly higher depending on their circumstances.

The number of bookings that were affected and the delays customers experienced will factor into the refunds they receive.

This week, law firms Echo Law and Piper Alderman began issuing the court-ordered notices to customers by text message and email.

Echo Law partner Andrew Paull said the notices were a critical step towards distributing settlement funds, but customers first needed to follow the instructions and take steps to participate in the proposed settlement.

"That's why we're reaching out by email and text message using the details that customers provided to Qantas when purchasing tickets," Mr Paull said.

"Even customers who used the flight credit they were issued, or subsequently received a refund are eligible to participate if they meet the relevant criteria."

Customers who received Qantas flight credits for cancelled flights between January 2020 and November 2022 may be eligible.

Piper Alderman lawyer Kate Sambrook said the texts and emails being sent by the firms were in fact legitimate.

"We're aware that the large number of scams that take place mean some recipients of these communications may question whether the text or email they're receiving is legitimate."

She said the process would take "several months" and the firm's "current expectation is that payments will start being made by the end of this calendar year".

Qantas will distribute $68 million to customers who received a travel credit rather than a refund for flights cancelled during the pandemic.

Another $37 million has been reserved from the settlement for commissions and legal fees following the case initiated by Echo Law.

As part of the settlement, Qantas has not admitted any wrongdoing.

The airline has also extended the expiry date of COVID-19 flight credits indefinitely.

Qantas says customers eligible for receive compensation under the settlement can still choose to seek a refund instead of using their COVID-19 credit.

The settlement still requires Federal Court approval.

The lawyers expect payments to begin after the approval process, with timing dependent on the final settlement process.

It comes as airlines continue to face scrutiny over billions of dollars in COVID-era flight credits issued when pandemic restrictions forced widespread cancellations.