Qantas Airways has reached an agreement to pay 120 million Australian dollars ($79 million) in compensation and fines for selling tickets on thousands of cancelled flights, as announced by the airline and Australias consumer watchdog on Monday.Compensation for affected customersThe Australian Competition and Consumer Commission (ACCC) filed a lawsuit against Qantas in the Federal Court last year, accusing the airline of false, misleading, or deceptive conduct by advertising tickets for over 8,000 flights that were cancelled from May 2021 to July 2022.As part of the settlement, Qantas has agreed to pay an AU$100 million ($66 million) fine to the Australian government and an estimated AU$20 million ($13 million) to more than 86,000 affected customers. Qantas Chief Executive Vanessa Hudson stated, “Today represents another important step forward as we work towards restoring confidence in the national carrier.”Acknowledgement of shortcomingsHudson acknowledged Qantass shortcomings, particularly in providing timely cancellation notifications to customers. She expressed remorse, stating, “When flying resumed after the COVID shutdown, we recognised Qantas let down customers and fell short of our own standards.”A Federal Court judge is yet to approve the settlement, which includes Qantas payments of AU$225 ($149) to domestic ticket holders and AU$450 ($298) for international bookings, along with other remedies like alternative flights and refunds. ACCC Chair Gina Cass-Gottlieb emphasised the significance of the penalties, stating, “Qantas conduct was egregious and unacceptable.”Additionally, Cass-Gottlieb highlighted that Qantas admitted to its misconduct extending until August last year, which was longer than initially alleged by the regulator in court. The ACCC initiated the lawsuit shortly after Qantas reported record profits for the fiscal year ending June 30, 2023, rebounding from pandemic-induced losses.Qantass financial performanceFor the fiscal year 2022/23, Qantas reported an underlying profit before tax of AU$2.47 billion ($1.6 billion), marking a significant recovery from the AU$1.86 billion ($1.2 billion) loss in the previous year. The airlines after-tax profit for the latest year stood at AU$1.74 billion ($1.13 billion).
