Qantas agreement with ACCC and remediation program

Qantas Airways Limited (ASX: $QAN) has reached an agreement with the Australian Competition and Consumer Commission (ACCC) to resolve court proceedings related to flight cancellation processes. As part of the settlement, Qantas will initiate a projected $20 million remediation program for affected passengers, offering payments ranging from $225 to $450. The company will also be subject to a $100 million civil penalty, pending approval by the Federal Court of Australia.

Qantas Group CEO Vanessa Hudson's statement

Today represents another important step forward as we work towards restoring confidence in the national carrier. When flying resumed after the COVID shutdown, we recognize Qantas let down customers and fell short of our own standards. We know many of our customers were affected by our failure to provide cancellation notifications in a timely manner and we are sincerely sorry. We have since updated our processes and are investing in new technology across the Qantas Group to ensure this doesn't happen again. We thank the ACCC for their cooperation in reaching this outcome, which means we can compensate affected customers much sooner than if the case had continued in the Federal Court. We are focused on making the remediation process as quick and seamless as possible for customers.

Qantas agreement with ACCC and outlook

Qantas (ASX: $QAN) has reached an agreement with the ACCC to compensate impacted passengers through a projected $20 million remediation program. The company will also be subject to a $100 million civil penalty, pending approval by the Federal Court of Australia. Qantas Group CEO Vanessa Hudson expressed regret for the letdown experienced by customers and emphasized the company's commitment to restoring confidence in the national carrier. The remediation program will offer payments ranging from $225 to $450 to affected customers, with a focus on making the process as quick and seamless as possible. Qantas aims to prevent similar issues in the future by investing in new technology across the group. The financial impact of the remediation program and penalty will be recognized as an expense in the Group's Statutory Income Statement for the year ended 30 June 2024, with the cash outflow expected to occur after 30 June 2024 and not materially impacting Net Debt or Free Cash Flow for the FY24 financial year. The company's commitment to compensating affected customers and investing in technology reflects its dedication to improving customer experience and operational processes.