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.