Jetstar Sued for Not Giving Flight Refunds During COVID

Jetstar Airways is now embroiled in a class action lawsuit in the Federal Court of Australia, initiated by Echo Law on August 21. The airline is accused of failing to refund customers for flights cancelled during the COVID-19 pandemic from 2020 to 2022. Echo Law asserts that airlines were legally required to provide refunds for these cancellations, yet Jetstar predominantly issued travel credits, which came with significant restrictions and were of lesser value than the refunds owed to customers. The law firm is actively encouraging affected passengers to join the class action at no cost, emphasizing that customers may still be eligible for compensation even if they have already utilized their travel credits. In response, Jetstar stated that it is currently reviewing the claims. A spokesperson highlighted that the airline had removed expiry dates on COVID vouchers, allowing them to be used indefinitely and across multiple bookings, although these vouchers cannot be redeemed for cash. Echo Law's lawyers argue that Jetstar's decision to issue travel credits instead of cash refunds was financially beneficial to the airline, constituting a breach of contract. Echo Law Partner Andrew Paull criticized Jetstar for prioritizing profits over customer interests during a time of widespread flight cancellations. He noted that customers were left holding substantial amounts in restricted travel credits, contrary to the terms they had agreed upon. This class action follows a similar lawsuit against Qantas by Echo Law earlier in 2023, where customers also sought refunds instead of flight credits for cancelled flights during the pandemic.