Jetstar is facing a class action lawsuit over allegations it failed to refund customers whose flights were cancelled due to the COVID-19 pandemic.
Echo Law has commenced the case in federal court on behalf of hundreds of thousands of customers, alleging the budget airline has enjoyed financial benefits at their expense.
The firm alleges Jetstar refunded impacted customers between 2020 and 2022 with travel credits rather than payments, despite being legally obligated to do so.
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Those credits were allegedly of “much lower value to customers than the refunds to which customers were entitled” and subject to restrictions.
Echo Law partner Andrew Paull alleged Jetstar customers were pushed into holding credits even though it wasn’t what they had agreed to in the terms and conditions.
“Many Jetstar customers ended up paying the airline more than their original booking to use their credits on new fares, as they were led to believe they had little choice but to do that or else lose the value of the flights they paid for,” he said.
“This is another unjust enrichment Jetstar has enjoyed.”
Echo Law is alleging the airline breached its contract, engaged in “misleading or deceptive conduct” by misleading customers of their rights, engaged in a “system or pattern of unconscionable conduct” and held funds that should have been refunded.
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The firm believes impacted customers are entitled to refunds and compensation even if they have used their travel credits or received a refund.
“It now needs to be held accountable and refund that money with interest,” Paull said.
Jetstar said it was currently reviewing the claims, which were served this morning.
“Last year we removed expiry dates for COVID vouchers so they can be used indefinitely,” a Jetstar spokesperson said.
“These vouchers are also multi use, meaning they can be used across multiple bookings and for multiple people.”
Anyone who held tickets for a flight that was cancelled between January 1, 2020, and November 1, 2022, may be able to join the class action as a group member.
Registrations are now open on Echo Law’s website for people to participate.
Echo Law has a separate class action against Qantas in 2023 over its COVID credits program, which remains ongoing.
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