The Qantas Settlement Text That Looks Like a Scam But Isn't

Key points

• Qantas reached a $105 million class-action settlement over COVID-19 flight credits denied to customers during the pandemic.
• More than one million customers began receiving settlement notices by text and email this week from law firms Echo Law and Piper Alderman.
• Eligible customers can expect a minimum payment of $50, with some receiving significantly more based on their number of affected bookings.
• $68 million goes directly to customers; the remaining $37 million covers legal fees and commissions.
• The settlement still requires Federal Court approval before payments begin, which lawyers expect by the end of 2025.

A text message or email lands in your inbox. It promises money from an airline settlement. Every instinct says delete it.

This time, don't.

Qantas customers who held COVID-19 flight credits for cancelled flights are eligible for a share of a $105 million class-action settlement, the result of a legal case arguing the airline broke its contractual obligations by refusing refunds when pandemic restrictions grounded flights. A class action is a lawsuit brought by a large group of people against the same organisation, all claiming the same harm.

Law firms Echo Law and Piper Alderman began sending court-ordered notices this week. The firms confirm the messages are legitimate, even if the format looks identical to a typical scam.

Why do these messages look so suspicious?

Because scammers have trained us to distrust exactly this kind of message: an unsolicited text offering money, with a link to click. Echo Law partner Andrew Paull said the firms are using contact details customers originally gave to Qantas when buying tickets, which is why the messages may arrive from an unfamiliar sender.

The lawyers urge customers not to ignore the notice. You must follow the instructions in the message and take active steps to join the settlement. Doing nothing means no payment.

Customers who held flight credits for bookings cancelled between January 2020 and November 2022 are potentially eligible, including those who eventually used their credit or later received a partial refund. The minimum expected payout is $50. Customers with multiple affected bookings or longer delays could receive considerably more.

Qantas has not admitted any wrongdoing as part of the agreement. The airline also extended its COVID-19 flight credits so they no longer expire, and customers eligible for settlement payments can still choose a full refund instead.

Piper Alderman lawyer Kate Sambrook said payments are expected to start before the end of this calendar year, though the exact timing depends on Federal Court approval of the final settlement terms.

If you are a Qantas customer and you received one of these messages, here is what to do. Read it carefully. Check that it references the class action and directs you to a process managed by Echo Law or Piper Alderman. Follow the instructions. If you are unsure whether a message is genuine, search directly for Echo Law or Piper Alderman online, as first reported by ABC News Australia, and contact those firms through their official websites rather than clicking any link in the message itself.

Virgin Australia customers are watching this closely. That airline still faces pressure over COVID-era credits that, unlike Qantas credits, carry expiry conditions.