Qantas Admits Misleading Customers on Cancelled Flights — What It Means for Australian Travellers and Businesses
- Barry Money
- Jul 11
- 3 min read
Updated: Aug 5
Published: 6 May 2024 | Source: ACCC Media Release
Written for Bane Legal Services – Australia’s trusted legal matchmaker
When Australia’s largest airline misleads tens of thousands of customers over cancelled flights, it’s not just a public relations crisis — it’s a landmark case in consumer law.
On 6 May 2024, the Australian Competition and Consumer Commission (ACCC) announced that Qantas Airways Ltd had admitted to misleading consumers by advertising and selling tickets for flights that had already been cancelled. In a proposed agreement with the ACCC, Qantas faces a $100 million penalty (pending Federal Court approval) and will pay an estimated $20 million in compensation to over 86,000 affected customers.
This blog breaks down what happened, what Qantas has agreed to do, and what Australian consumers and businesses should take away from the case.
Bane Legal Services is not a law firm and does not provide legal advice. We are your trusted legal matchmaker — connecting you with experienced commercial lawyers who understand consumer law, business compliance, and reputational risk.
What Did Qantas Do Wrong?
Between May 2021 and August 2023, Qantas allegedly:
Advertised more than 8,000 flights that had already been cancelled
Failed to notify customers in a timely manner that their flights — over 10,000 of them — were no longer going ahead
Allowed travellers to be rebooked onto flights that Qantas had internally decided to cancel
The ACCC filed Federal Court proceedings against Qantas in August 2023. In this latest development, Qantas has admitted the conduct was misleading under the Australian Consumer Law (ACL).
“Qantas’ conduct was egregious and unacceptable,” said ACCC Chair Gina Cass-Gottlieb. “Many consumers will have made holiday, business and travel plans after booking on a phantom flight that had been cancelled.”
What’s in the Settlement?
As part of a court-enforceable undertaking, Qantas has agreed to:
Pay $20 million in compensation to 86,597 domestic and international customers
Support a $100 million penalty to be imposed by the Federal Court (pending approval)
Reform internal systems to prevent misleading conduct in future
Improve transparency, including:
Informing customers of cancelled flights within 48 hours
Stopping the sale of cancelled flights within 24 hours
Applying these standards to Jetstar as well
Qantas will also appoint independent auditors to monitor compliance and report to both its board and the ACCC.
Compensation: What Can Affected Travellers Expect?
Affected customers can expect:
$225 if the flight was domestic
$450 for international flights
Affected bookings must have occurred between 21 May 2021 and 26
August 2023, with flights scheduled between 1 May 2022 and 10 May 2024
Qantas, with the assistance of Deloitte Australia, will contact eligible customers by 10 July 2024 via email and SMS.
Be Scam Aware: Only provide your details via Qantas’s official portal. Scammers may try to imitate these communications.
What Does This Mean for Australian Businesses?
This case sets a powerful precedent. The $100 million penalty, if approved, will be one of the largest under the ACL, and it sends a clear message:
Companies must not mislead or delay information when dealing with customers.
If your business sells directly to consumers — whether travel, products, or services — consumer law compliance is not optional. Misleading or deceptive conduct, even unintentionally, can result in serious financial and reputational damage.
Need Help Navigating Consumer Law?
Whether you’re in aviation, retail, professional services or tech — if your business engages with Australian consumers, you need to understand your legal obligations.
Bane Legal Services is not a law firm, and we don’t offer legal advice — but we do connect business owners with the right commercial lawyers to handle serious legal and compliance issues like this one.
With over 30 years of business experience, we know how to match clients with legal professionals who can provide real answers, fast.
Contact us today if you’d like to speak with a lawyer who understands the ins and outs of the Australian Consumer Law.
Source:
Original media release by the ACCC, available here:
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