Australia’s national carrier will pay a $100 million fine in an ongoing case where it was accused of selling tickets to customers that had already been cancelled.
During a Federal Court case on Oct. 8, it was revealed senior managers were partially aware of the issue but failed to take timely action.
The Australian Competition and Consumer Commission (ACCC) then took legal action against Qantas for misleading and deceptive conduct.
Justice Helen Rofe officially imposed the $100 million fine, which Qantas and the ACCC agreed to earlier this year.
Between May 21, 2021, and Aug. 26, 2023, Qantas sold tickets for flights scheduled for a 10-day period between May 1, 2022, and May 10, 2024.
These flights were already cancelled however.
The practice is alleged to have impacted over 86,000 customers across 70,000 flights. In some cases, the airline continued to sell seats for cancelled flights for up to 62 days, and it took as long as 67 days to notify customers that their flights would not go ahead.
Christopher Caleo, representing the ACCC, told the court that while senior managers at Qantas were aware of various elements of the issue, no one fully understood the extent of the problem.
Despite this, Qantas was accused of allowing the issue to persist.
The fine was divided into two parts: $70 million for continuing to sell tickets for cancelled flights, and $30 million for failing to inform customers about cancellations promptly.
Given Qantas’ dominant position in the Australian market, with 38 percent market share, the penalty was deemed necessary to deter similar behaviour in the future.
“A penalty must send a clear message to other large companies that breaching consumer law will not be tolerated,” said Caleo.
In court, Qantas expressed regret over its actions.
“Qantas apologises for its conduct,” said barrister Ruth Higgins.
The airline has since taken steps to improve its processes, pledging to notify customers of flight cancellations within 48 hours and to stop selling tickets for cancelled flights within 24 hours. This policy also extends to Jetstar, its low-cost subsidiary.
In addition to the fine, Qantas has compensated affected customers, paying out $20 million in total, with domestic passengers receiving $225 and international passengers $450 each.
The airline, which faced potential fines of up to $7.58 billion, said its new measures demonstrate a commitment to preventing similar issues in the future.
