Aussie Airlines Facing Hefty Fines Over Refund Policies

Australia’s airlines are reviewing their refund policies after an investigation by the consumer watchdog.

Qantas, Virgin Australia, Tigerair and Jetstar are reviewing their refund policies following an ACCC investigation into non-refundable air fares. 

Jetstar is facing a $1.95 million fine, after it was deemed the airline made false or misleading representations about consumer guarantee rights under the Australian Consumer Law (ACL).

The airline listed some cheaper flights were not refundable, meaning consumers could only get a refund if they purchased a more expensive fare.

“No matter how cheap the fares are, airlines cannot make blanket statements to consumers that flights are non-refundable,” ACCC Chair Rod Sims said.

 “It’s frustrating for travellers when they have difficulty getting a refund for flights when they are entitled to one. This case is important not only for holding Jetstar to account, but sending a wider message that businesses cannot exclude or limit consumers’ rights under the Australian Consumer Law,” Mr Sims said.

The ACCC has published new guidance to help consumers understand their rights in relation to flight delays and cancellations, which can be found here: Flights delays & cancellations