Qantas airline resolves compensation for ‘Ghost Flights’ controversy

• The airline will also launch a plan worth up to A$20 million to compensate affected passengers.
• The “ghost flight” case was launched in August, alleging that Qantas sold tickets for canceled flights for weeks.
• Customers who purchased tickets for canceled flights will receive compensation.

Australia’s biggest airline, Qantas, has agreed to pay an A$100 million ($66.1 million, £52.7 million) penalty to settle a legal case accusing it of selling thousands of tickets for flights it had already canceled.

Under the deal with the Australian Competition and Consumer Commission (ACCC), the firm will also launch a plan worth up to A$20 million to compensate affected passengers.

Qantas’ Chief Executive, Vanessa Hudson, stated that the move represented an important step toward “restoring confidence in the national carrier.”

The ACCC launched the so-called “ghost flight” case in August, claiming that in some instances, Qantas had sold tickets for flights that had been canceled for weeks.

The penalty agreement between Qantas and the ACCC will now require approval from the Federal Court of Australia.

Under the plan, customers who purchased tickets for flights that had already been canceled for two or more days will be entitled to compensation.

According to the airline, customers will receive A$225 for domestic flights and A$450 for international tickets.

“When flying resumed after the Covid shutdown, we recognize Qantas let down customers,” said Ms. Hudson, who stated that she made it a priority to restore the airline’s reputation when she was appointed to the job last year.

She also mentioned that the company had revamped its processes and invested in technology to prevent a recurrence of the problem.

“We are pleased to have secured these admissions by Qantas that it misled its customers, and its agreement that a very significant penalty is required”, ACCC Chair Gina Cass-Gottlieb said.

When Ms. Hudson became the first woman to lead the airline, Qantas was facing a series of scandals and legal cases.

Her predecessor, Alan Joyce, guided the company through the 2008 financial crisis, the pandemic, and record fuel prices.

However, by the time Mr. Joyce stepped down in 2023, growing public anger was directed toward Qantas over expensive airfares, mass delays and cancellations, and its treatment of workers.

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