The proclivity of Qantas and Jetstar to issue credit vouchers in lieu of refunds for flights cancelled during the pandemic has landed the two carriers in legal trouble, with class actions filed in the Federal Court against both airlines.
Led by Melbourne-based Echo Law, the actions accuses both Qantas and its low-cost offshoot of failing to refund customer payments and instead issuing credits for future travel, during which time it earned interest by retaining the funds of its customers.
The law firm says the credit vouchers preferred by Qantas and Jetstar carried significant restrictions and were for lower value than the funds to which customers were legally entitled to receive back as refunds.
Allegations in the class action say travel restrictions imposed during the pandemic “frustrated” travel contracts between the two airlines and customers, causing these contracts to be automatically terminated, which should have given customers a right to recover money paid under those contracts.
The failure of Qantas and Jetstar to issue refunds was a breach of contract, the law firm says.
The action is seeking refunds of amounts owed to Qantas and Jetstar customers in addition to compensation for the difference between the “value” of the travel credits issued and the actual fare initially paid, plus an award for interest and consequential losses incurred.
This includes compensation for “loss of money” which the law firm says is designed to recognise the impact customers had due to being deprived of a significant sum of money for an extended period of time.
Echo Law is now inviting travellers who held tickets for Qantas and Jetstar flights scheduled between 01 Jan 2020 and 01 Nov 2022 to register for the action, even if they have since used the credit subsequently issued.
