The settlement includes a fine of 100 million Australian dollars ($66m) and compensation of 20 million Australian dollars ($13m) to more than 86,000 affected customers. The Australian Competition and Consumer Commission (ACCC) described Qantas’ conduct as “egregious and unacceptable”, highlighting the impact on consumers who had made travel plans based on bookings for flights that were not operational.

ACCC Chairperson Gina Cass-Gottlieb emphasised the importance of clear and honest communication with customers, stating, “Importantly, it demonstrates that we take action to ensure that companies operating in Australia communicate clearly, accurately and honestly with their customers at all times.”

In response to the settlement, Qantas Group CEO Vanessa Hudson acknowledged the airline’s failure to meet its own standards, particularly in notifying customers of cancellations in a timely manner. Hudson expressed regret for the inconvenience caused to customers during the resumption of travel following COVID-19 shutdowns, citing deficiencies in technology and support systems.

The settlement, subject to court approval, is viewed as an “important step forward” by Qantas in restoring confidence in the national carrier. However, the airline has faced a series of challenges in recent years, including criticism over rising ticket prices, service standards, and layoffs of ground staff during the pandemic.

Former CEO Alan Joyce’s early retirement in September, after 15 years in the role, reflected the turbulence within the company amidst public scrutiny. Despite reporting an annual profit of $1.1bn last year, Qantas continues to navigate controversies and strives to regain trust and credibility among passengers.

This settlement underscores the significance of transparency and accountability in the aviation industry, serving as a reminder to airlines worldwide of the importance of clear communication and adherence to consumer protection regulations.