Pilotcenter.net News reported that the Federal Court of Australia has taken action against Qantas, ordering the airline to pay a hefty $100 million in penalties for deceiving customers with the sale of tickets for flights that had been canceled, commonly referred to as “ghost flights”. This ruling came after the Australian Competition and Consumer Commission (ACCC) announced the penalties on October 8, 2024. In a gesture of acknowledgement, Qantas admitted to breaching the Australian Consumer Law (ACL) and agreed to cooperate with the ACCC during the legal process.

ACCC Chair Gina Cass-Gottlieb emphasized the significance of the imposed penalty, stating that it sends a clear message to all businesses, regardless of size, that misleading customers will lead to severe repercussions. Qantas confessed to providing inaccurate flight information to the public from May 2022 to May 2024, allowing the sale of tickets for flights that had already been canceled on both domestic and international routes.

The airline kept these canceled flight tickets on sale for an average of 11 days post-cancellation, with some remaining available for purchase for up to 62 days afterward. This impacted a significant number of customers, with 86,597 individuals (81,238 domestic bookings and 5,359 international bookings) affected on 70,543 flights (69,237 domestic and 1,306 international).

Not only did Qantas delay informing ticket holders about flight cancellations, but it also neglected to update flight details on the “Manage Booking” page promptly after deciding to cancel flights. This lack of communication affected 60,297 flights (57,274 domestic and 3,023 international), impacting 883,997 customers (806,406 domestic bookings and 77,571 international bookings).

In addition to the $100 million in penalties, Qantas will be obliged to refund approximately $20 million to customers affected by the ordeal. Domestic ticket holders will be entitled to a refund of $225 each, while international ticket holders will receive $450 per booking. Cass-Gottlieb pointed out that a reputable company like Qantas should have had stringent operational and compliance protocols in place to prevent such issues from occurring in the first place.

The ACCC confirmed that following the legal proceedings, Qantas has implemented updates to its operational and scheduling systems to prevent the recurrence of such deceptive practices. Stay informed with the latest exclusive news updates by subscribing to the Pilotcenter.net News platform.