Qantas Pays $199.75 Million for Selling Tickets for Cancelled Flights: ACCC Investigation Reveals 'Ghost Flights'

Sydney, Australia Australia
ACCC investigated Qantas' practices and found they had advertised and sold 'ghost flights'
Over 172,000 customers affected by the issue.
Qantas agreed to pay $199.75 million in fines and compensation for selling tickets for cancelled flights.
Qantas Group CEO Vanessa Hudson acknowledged the error.
Qantas Pays $199.75 Million for Selling Tickets for Cancelled Flights: ACCC Investigation Reveals 'Ghost Flights'

Australia's Qantas Airways has agreed to pay a combined total of $199.75 million in fines and compensation after admitting to selling tickets for already cancelled flights, also known as 'ghost flights.' The airline will pay a civil penalty of $130 million Australian dollars ($86m) and provide compensation of $69.75 million Australian dollars ($44m) to over 172,000 customers affected by the issue.

The controversy came to light in late 2023 when the Australian Competition and Consumer Commission (ACCC) launched an investigation into Qantas' practices. The ACCC alleged that between May 2021 and May 2024, Qantas advertised and sold tickets for thousands of domestic and international flights that had already been cancelled in its internal system.

Qantas Group CEO Vanessa Hudson acknowledged the error, stating, 'We let down our customers and fell short of our own standards. We know many customers were affected by our failure to provide cancellation notifications in a timely manner.'

The ACCC Chairperson, Gina Cass-Gottlieb, commented on the settlement: 'Qantas' conduct was egregious and unacceptable. Many consumers will have made holiday, business and travel plans after booking on a phantom flight that had been cancelled.'

The fine is subject to court approval.

In recent years, Qantas has faced numerous controversies including rising ticket prices, claims of poor service standards, and the firing of 1700 ground staff during the COVID-19 pandemic. Former CEO Alan Joyce retired early due to these allegations against the airline.



Confidence

80%

Doubts
  • Is the fine of $130 million Australian dollars ($86m) the final amount?
  • Were all affected customers notified and compensated?

Sources

96%

  • Unique Points
    • Qantas will pay a $100 million civil penalty and $20 million in compensation to customers for selling tickets to cancelled flights.
    • Former CEO Alan Joyce retired early due to the allegations against Qantas.
    • Qantas has agreed to make compensation payments to 86,597 consumers who booked or were re-accommodated on a domestic or international flight scheduled to depart between May 2022 and May 2024 after Qantas had already decided to cancel it.
  • Accuracy
    • Qantas agreed to pay a $66 million fine for misleading consumers by advertising seats on cancelled flights.
    • Customers affected were flying on domestic or trans-Tasman routes, with the remainder flying on the international network.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (90%)
    The article contains an example of an appeal to authority. The author states that the Australian Competition and Consumer Commission (ACCC) has agreed to drop its allegation that Qantas had charged fees for no service, while the airline dropped its defence that it only sells a bundle of rights rather than a ticket to a specific flight. This shows an agreement between two parties and does not necessarily reflect the truth or accuracy of the situation. Additionally, there is an example of inflammatory rhetoric when referring to Qantas' conduct as 'egregious and unacceptable'.
    • The airline dropped its defence that it only sells a bundle of rights rather than a ticket to a specific flight.
    • Qantas’s conduct was egregious and unacceptable.
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  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

93%

  • Unique Points
    • Qantas agreed to pay a $66 million fine for misleading consumers by advertising seats on cancelled flights.
    • Qantas previously defended selling seats on cancelled flights by arguing that customers buy a ‘bundle of rights’ and a promise from the airline to get them to their destination on time.
  • Accuracy
    • Qantas will pay a $100 million civil penalty and $20 million in compensation to customers for selling tickets to cancelled flights.
    • Qantas posted an annual profit of $1.1 billion last year, marking a major financial rebound after the travel turbulence of the Covid years.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The article contains an appeal to authority and a potential false dilemma. It quotes the Australian Competition and Consumer Commission chairperson Gina Cass-Gottlieb's statement without questioning the validity of her claims. Additionally, it presents Qantas's cancellation issue as a binary choice between selling seats on cancelled flights or not operating any flights at all, which might be misleading.
    • . Australian Competition and Consumer Commission chairperson Gina Cass-Gottlieb said
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

100%

  • Unique Points
    • Qantas has agreed to pay $120 million Australian dollars ($79m) to settle a lawsuit over the sale of tickets for already cancelled flights.
    • Qantas Group CEO Vanessa Hudson said the settlement, which is subject to court approval, was an ‘important step forward as we work towards restoring confidence in the national carrier.’
    • The airline will pay a fine of 100 million Australian dollars ($66m) and provide compensation of 20 million Australian dollars ($13m) to more than 86,000 customers after advertising seats for thousands of ‘ghost flights’ in 2021 and 2022.
    • Qantas has faced a barrage of controversies in recent years over rising ticket prices, claims of poor service standards, and the firing of 1700 ground staff during the COVID-19 pandemic.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication