In a major turnaround from previous policy, Qantas has removed expiry dates on its COVID-19 travel credits, finally responding to customer criticism. The airline’s announcement was originally scheduled to expire at the end of 2023. It arrives during a continued climate of state legal and regulatory attacks. Even up in the clouds, Qantas CEO Alan Joyce recently admitted credit system was broken. He added it hasn’t been as effective as it should have been.
Qantas has shifted its policy. This dramatic about-face follows months of pressure on the airline from the Australian Competition and Consumer Commission (ACCC), which sued them in August 2023. The regulator accused Qantas of selling tickets for thousands of flights that had already been cancelled, further complicating the situation for customers holding travel credits.
One week after the legal action had been filed, Joyce resigned as CEO. In a video statement, he assured customers that “these credits and vouchers will never expire.” This reassurance aims to restore confidence among travelers who have felt uncertain about their unused credits during the pandemic.
Though Qantas has done a good job addressing flaws in its credit system within the rubric of the law, Virgin Australia remains operating under laxer terms. Passengers possessing travel credits with Virgin Australia are advised to use them any time ahead of June 30, 2026. The airline has $93 million in COVID-19 flight credits it owes customers. These credits are securely held in customers’ “Travel Bank” accounts. In contrast to Qantas, Virgin Australia’s travel credits are quite restricted for use exclusively on flight bookings.
Virgin Australia has set up individual accounts on behalf of at-risk customers to improve trust and better manage these customers’ credits. Now travelers have to be sure to book and take all of those flights before the June 2026 deadline or else their credits will be forfeited.
Against the backdrop of customer service failures currently rocking the global airline industry, a national class action lawsuit was filed against Jetstar earlier this year, in 2024. Customers have raised complaints about limited use of travel credits that amounted to an unexpected change in the terms of their original agreement.
“Jetstar customers were pushed into holding hundreds of millions of dollars in restricted travel credits, even though this wasn’t what those customers had agreed to as part of the airline’s terms and conditions.”
The ACCC has previously cautioned a number of airlines regarding their cancellation and delay practices. This settlement marks an alarming trend of increasing scrutiny of airline practices around customer expectations and entitlements in the event of a service disruption.
Qantas is still on the ropes after performing poorly during the pandemic and facing legal and reputational backlash from its actions. Eliminating expiry dates on travel credits would be an important step to restoring lost customer faith and confidence. Joyce’s admission that “we know the credit system was not as smooth as it should have been” underscores a larger effort to enhance customer service and satisfaction.
Even with better circumstances at Qantas, consumers are savvier than ever when it comes to knowing their rights and options. Now, legal experts are sounding the alarm on airlines’ handling of travel credits and cancellations. Virgin Australia and Jetstar are just two of the carriers now coming under increased scrutiny.
“Accordingly, those credits were of much lower value to customers than the refunds to which they were entitled,” states Echo Law’s website, highlighting the disparity between credits and cash refunds.
According to industry analysts, moving forward, airlines should put transparency and consumer orientation first.
“Jetstar promotes itself as a values-driven, low-fare airline committed to helping ‘more people fly, more often’, yet it’s a highly profitable part of the Qantas Group,” says Andrew Paull. “When COVID caused widespread flight cancellations, it put those profits ahead of its customers’ interests.”
