Qantas faces class action over pandemic travel credits treated as ‘$1bn in interest-free loans’

Qantas is facing a customer class action lawsuit over its use of travel credits. Class action firm Echo Law is alleging the airline breached its own contract with customers by failing to provide cash refunds in a timely manner. Photograph: Dave Hunt/AAP

Qantas is facing a class action lawsuit over its refund policy for flights cancelled due to the pandemic, with lawyers alleging the airline’s use of travel credits allowed them to treat their customers’ money as more than “$1bn in interest-free loans”.

On Monday, class action firm Echo Law announced it had lodged proceedings against Qantas in the federal court “on behalf of hundreds of thousands” of pandemic-affected travellers with an aim of forcing refunds for all remaining flights credits and compensation due to lost interest on customers’ money held by Qantas.