What is the story about?
March
13 (Reuters) - Australia's Qantas Airways said on Friday it has agreed to settle a class action related to flight credits issued during the COVID-19 pandemic for A$105 million ($74.26 million), with no admission of liability.
Here are some details:
* The settlement, subject to approval by the Federal Courtof Australia, relates to flights scheduled to depart betweenJanuary 2020 and November 2022 but were cancelled by theairline. * The settlement is higher than the A$55 million provisionthat Qantas Airways mentioned in its latest half-year results inFebruary for the flight credits class action. * Australia's flag carrier said any additionalsettlement-related charge would be recognised outside underlyingearnings in the second half of fiscal 2026, which would have animpact on net earnings. * Echo Law, which brought the class action on behalf ofaffected customers, said on its website that the parties hadagreed to settle the case. * The lawsuit, filed in August 2023, included allegationsthat Qantas breached contractual obligations by failing toprovide refunds for cancelled flights during the pandemic. * In August 2023, Qantas removed the expiry date on flightcredits issued during the pandemic, allowing customers torequest a cash refund indefinitely. * The airline said the settlement amount would be paid to acourt-approved administrator, with payment currently expected inthe first half of fiscal 2027.($1 = 1.4140 Australian dollars)
(Reporting by Roshan Thomas in Bengaluru; Editing by Shilpi Majumdar)
