More than one million Qantas customers are set to receive compensation after the airline reached a $105 million settlement over its handling of COVID-19 flight credits issued during the pandemic.

The class action alleged that passengers whose flights were cancelled between January 2020 and November 2022 were offered travel credits instead of cash refunds they were entitled to receive. Qantas agreed to settle the case without admitting liability.

Eligible customers will begin receiving court-approved notices by email and text message, outlining how to participate in the compensation process. Payments will vary depending on factors such as ticket value and how long flight credits were held, with eligible customers expected to receive at least $50.

The settlement is one of Australia’s largest consumer payouts linked to the pandemic and follows years of legal action over the airline’s refund policies. Qantas had previously removed expiry dates on COVID-era flight credits, allowing customers to request refunds indefinitely.