Budget airline Jetstar has been hit with a class-action lawsuit on behalf of hundreds of thousands of customers who were allegedly denied refunds for flights cancelled during the Covid-19 pandemic.
Echo Law launched the class action lawsuit in the Federal Court of Australia on Wednesday morning.
The firm states that QantasThe Boeing-owned budget airline failed to adequately reimburse customers for dozens of flights that were cancelled during the COVID-19 period between 2020 and 2022.
The class action lawsuit alleges that Jetstar issued customers restricted travel credits that were less than the amount they should have been refunded.
The law firm claims Jetstar’s actions breached its contractual obligations.
The legal action aims to recover outstanding amounts allegedly owed to the airline’s customers.
Customers are also demanding compensation for the difference between the value of the travel credits and the refund.
The firm has also alleged that the airline misled customers about their rights in the event of widespread flight cancellations during the pandemic.
A class action lawsuit alleges Jetstar failed to refund customers for dozens of flights that were cancelled during the Covid-19 pandemic between 2020 and 2022 (file image)
This conduct is alleged to constitute a breach of Australian Consumer Law.
Echo Law partner Andrew Paull said Jetstar allegedly gained a significant financial advantage through its use of the restricted travel credits.
Mr Paull claimed the scheme allegedly kept money from clients even though they were unable to fly.
“Jetstar engaged in misleading or fraudulent conduct in breach of the Australian Consumer Law by misleading customers about their rights in the event of widespread Covid cancellations,” Paull said. 7 News.
“The right thing for Jetstar to do when it cancelled all those flights was to refund its customers’ money without delay.”
The class action, which was launched in Australia’s Federal Court on Wednesday, claims that Jetstar’s failure to issue the money was a breach of its contractual obligations (file image)
A Jetstar spokeswoman told Daily Mail Australia that the airline will review the claims raised in the class action lawsuit.
“Last year we removed expiry dates on Covid vouchers so they can be used indefinitely,” the spokeswoman said.
‘These vouchers are also multi-use, meaning they can be used on multiple bookings and for multiple people.’
The spokeswoman said the travel credits issued were of the same value as the original booking.
The spokeswoman also said that credits are part of the booking process outlined in the terms and conditions.
Customers are seeking compensation and the class action lawsuit aims to recover outstanding amounts owed to travellers (pictured, passengers in the terminal at Sydney International Airport)
Daily Mail Australia understands that Jetstar has removed the expiry dates on all Jetstar Airways Covid vouchers in August 2023.
Vouchers cannot be redeemed for cash. Customers can check the remaining amount of their vouchers by logging into the voucher balance portal.
The class action is being funded by Court House Capital, an Australian litigation funder.
Customers participating in the class action lawsuit will not face any out-of-pocket costs.