Qantas begins paying $20m for ‘phantom flight’ following ACCC deal

Qantas has started paying $20 million to travellers who bought tickets for flights that have already been cancelled, under an ACCC settlement reached last month.

The ACCC alleged that for more than 8,000 flights scheduled between May and July 2022, Qantas continued to sell tickets on its website for an average of more than two weeks, and in some cases up to 47 days, after the flights were cancelled.

ACCC files legal action alleging Qantas advertised flights it had already cancelled

It is also alleged that for more than 10,000 flights scheduled between May and July 2022, Qantas failed to notify existing ticket holders that their flights had been cancelled for an average of around 18 days, and in some cases up to 48 days.

Last month, Qantas CEO Vanessa Hudson acknowledged that customers had been misled and that the carrier was now required to notify customers of a flight cancellation no later than 48 hours after the decision to cancel the flight was made.

It must also stop selling tickets within 24 hours of the cancellation.

Qantas will pay $225 each for customers booked on domestic or trans-Tasman flights and $450 for canceled international flights.

Those affected have until May 7, 2025 to claim payment, after this date unclaimed payments will be donated to charity.

“We know we have let many people down by not processing canceled flights quickly enough, and this program is another important step as we rebuild trust with our customers,” a Qantas spokesperson said. The Daily Telegraph.

“We have updated our processes and are investing in technology to ensure this does not happen again.”

Qantas admits guilt

ACCC chair Gina Cass-Gottlieb said senior Qantas officials were aware systems were not able to inform customers of cancelled flights in a timely manner, leading to tickets being sold for “ghost flights”.

The $20 million payment is part of a larger fine that totals $120 million, including a $100 million civil penalty.

Qantas imposes $100 million penalty on passengers to recover $20 million from canceled flights

Cass-Gottlieb had initially sought a $250 million penalty, but Qantas was granted a “rebate” for its cooperation in the matter and the admission that senior executives were in fact aware of the systems’ deficiencies.