Key Points
- Customers are frustrated about the challenges in using Qantas flight credits.
- The airline's unused flight credits are reported to be worth more than $800 million.
- An expert says the carrier's brand remains "extremely strong" regardless.
Qantas has been accused of "making it as difficult as possible" to use flight credits by customers who say their attempts to use outstanding credits have been blocked by the airline.
Flights paid for by Qantas customers during the pandemic but never taken are reported to be worth more than $800 million.
Instead of refunds, customers were issued credits, which must be used by 31 December 2023.
But the credits have been notoriously difficult to use, according to some customers.
Some have complained that the system won't let them book flights of a lower cost than the credit, forcing them to buy new seats.
Others say the system charges them more when paying with their credit voucher as opposed to other payment types, or they've been unable to use their credits on discounted fares, forcing them to pay more.
Clinton Truman has found it hard to use his credit because he has moved from Singapore to Perth and closed his Singapore bank account since purchasing his flight in April 2020.
"I was only able to book from the destination that I had originally booked from," he told SBS News.
"How is this fair or reasonable? Qantas needs to understand that people's circumstances changed dramatically during and after COVID and they should make allowance for this."
When Mr Truman eventually tried to book a flight between Australia and Singapore using his S$2,500 ($2,753) credit, he says Qantas tried to charge him S$1,600 ($1,761) extra.
"With credit they're not using discounted prices. So while there are cheaper prices available, they won't use those," he said.
"It really frustrated me because I've been so loyal to Qantas for so many years. They're making it as difficult as possible, probably in the hope that everyone will give up and all the credits will be taken in December."
Clinton Truman has found it hard to use his Qantas credit because he has moved from Singapore to Perth since cancelling his flight in April 2020 and has been told he has to book a flight from the same destination. Source: Supplied
"They made no effort to set up a separate department to specifically help with these credits, which is what they should have done, especially for loyal customers."
Brisbane-based Rick Draper said he experienced wildly different prices when trying to book a flight to Melbourne, depending on the value of his two separate flight credits.
"With the $432 credit, the flight was $272 and if I used the $754 credit, the same flight, same conditions, same Red-e Deal was $436," he said.
"I ended up using the lower flight credit and giving them cash because the price for the Red-e Deal was double what it was using the higher value credit. This concept that you get fleeced more if you've got more in credit is a little unreasonable," he told SBS News.
Rick Draper in Brisbane says he was surprised and confused to be given two completely different prices when trying to book a flight with his Qantas credits. Source: Supplied
Donna Weeks from Brisbane, who now lives in Tokyo, says she will no longer book with Qantas once she has used up her flight credit.
Ms Weeks was issued a credit in March 2020 when she was forced to cancel a flight back to Australia. She says she's been unable to use her credit on a flight back since due to a lack of flights and availability.
She questions why there is an expiry date on the credits.
"It's a bit annoying for those of us overseas, because there was that period when we couldn't get back to Australia," she said.
"It was a flight cancelled because of COVID. Given what we've been going through in the last two or three years, I just don't see the point of the expiry date.
"Qantas used to be my primary airline. I just think it's really quite sad to see the way it's gone. I will only fly back if I can because the credit's there and after that, I'll probably go with other airlines."
Record profits
The frustration comes as travellers grapple with airfares higher than in pre-COVID times — and 20 per cent up from 2021 prices — due to inflation pressures and higher fuel costs. At the same time, many household budgets are squeezed thanks to higher interest rates.
On its website, Qantas states that flight credits for bookings made after 30 September 2021 can only be used towards a fare that is equal to, or higher than, the value of the flight credit.
"This means you must use your flight credit in one booking. Lower fares may be available on qantas.com using a different payment method," it adds.
Qantas has told SBS News that credits for bookings made on or before 30 September 2021 are not subject to the same restrictions.
Consumer group Choice submitted a formal complaint to the Australian Competition and Consumer Commission (ACCC) last year to investigate whether the airline's credit policy was fair. It came after a January 2022 survey found only a small percentage of people — seven per cent at the time — had used their credits.
But the ACCC stated that a travel customer's refund rights depended on the terms and conditions of their booking agreement.
Will people speak with their wallets?
Tim Riches, group strategy director at branding agency Principals, said the issues over flight credits were "triggering lots of negative sentiment" around the airline.
"The feeling that it creates for people is one of exploitation of imbalance of power," he said.
"You buy something in good faith under one set of circumstances and then you can't redeem it properly. It's a one-way negotiation; the company says what's going to happen and you've just got to suck it up."
But he said the Qantas brand is "extremely strong", which makes it resilient.
"Big strong brands that are fundamentally popular are much more resilient than people give them credit for. Being a remote and harsh country is part of our collective sense of identity and Qantas draws a lot of strength and cultural relevance from that, which makes them robust in the face of these sorts of challenges."
The risk, Mr Riches said, is if this new negative narrative becomes the dominant one over the long-term.
"The potentially new dominant narrative is that Qantas is fundamentally greedy and self-serving and puts its interests before that of its customers," he said.
"Qantas is definitely going through a tough patch at the moment. But is that translating into people voting with their wallets and choosing the alternative? The answer to that, at least in the short term, is no."
When asked about outstanding flight credits last week, Qantas CEO Alan Joyce said the airline was "making it easier for people to use them".
"We now have a dedicated concierge line with people that are experts at using credits. So that's a dedicated number. Even if you go through the general call centre, there's an option you go through to that dedicated team.
"We are sending you now an email every month to remind you have a credit. And we did, just before Christmas, a double points offer if you used your credit. So we're trying to incentivise you to use your credit," he added.
Qantas posted record half-year results last week after three years of losses due to the pandemic. This included profit before tax of $1.43 billion, 49 per cent higher than the prior first-half record result achieved in the 2018 financial year.
The airline said the strong result was thanks to "consistently strong travel demand, higher yields and cost improvements from the group’s $1 billion recovery program that is nearing completion".
