Virgin Australia Extends COVID-19 Flight Credit Expiry to May 2027

Virgin Australia has extended the expiry date for travel booked using flight credits issued during COVID-19 travel bans after pressure from customers and consumer advocates.

The airline had previously said travel vouchers issued by Virgin Australia between April 21, 2020 and July 31, 2022 would expire on June 30.

Customers were also told they would need to fly by that date as well.

However, as the deadline approached, the airline faced increasing criticism and calls to issue refunds instead.

Customers will still need to spend those credits by June 30.

However, the airline this morning announced customers will now be able to use those credits for flights up to "late May 2027".

According to a financial outlook published in late February, the airline held about $93 million in unclaimed COVID-19 flight credits.

Virgin Australia chief executive officer Dave Emerson said more than $1 billion worth of COVID-19 credits had already been claimed.

"Around 90 per cent of all COVID credits have already been redeemed," Mr Emerson said.

"For customers who still hold a remaining balance, this extension provides additional flexibility to plan and take future travel."

Criticism over expiry dates

Earlier this week, Senator Bridget McKenzie called on the airline to extend the expiry date or offer customers refunds.

"COVID travel credits are not loyalty points, they are customer money," Senator McKenzie said.

"Returning this $93 million to Virgin's bottom line would be, frankly, unacceptable.

"It's Australian consumers' money."

Choice communications and campaigns director Andy Kelly had also called on the airline to give the money back to customers.

"Many consumers book flights for a specific purpose," Mr Kelly said.

"If the flight is cancelled, they may no longer have a reason to fly."

He also pointed out that flight prices may have increased "dramatically" since the pandemic, "meaning consumers may need to chip in more money in order to be able to use the credit, which they may not be in a position to do".