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Few topics stirred as much traveller frustration during the pandemic as the humble airline credit.

You might remember them. They arrived quietly in inboxes after flights disappeared from booking systems almost overnight in 2020. Instead of refunds, many travellers received credits often wrapped in fine print and expiry dates that required the patience of a seasoned travel agent to decipher.

For hundreds of thousands of Qantas customers, that experience has now culminated in a $105 million settlement, announced this week following a class action lodged in the Federal Court of Australia.

The case was brought in August 2023 by plaintiff law firm Echo Law, representing passengers whose flights were cancelled during the pandemic shutdowns.

Their argument was straightforward: when flights were cancelled due to COVID travel restrictions, customers believed they were entitled to refunds, not just flight credits.

Those credits, however, became the default outcome for many travellers navigating the chaos of the early pandemic.

Echo Law partner Andrew Paull said the class action centred on that exact issue.

“This class action was based on allegations that Qantas customers were contractually entitled to cash refunds when their flights were cancelled due to COVID travel restrictions,” Paull said.

Instead, he said, many customers were issued restricted flight credits.

Anyone working in travel at the time will remember the sheer volume of credit queries moving through agency inboxes. Rebooking conditions shifted constantly as borders snapped shut and reopened again.

For passengers, it often felt like trying to solve a moving puzzle.

Paull said the settlement represents a significant outcome for those affected travellers.

“This is a very significant financial settlement which will see compensation put into the hands of hundreds of thousands of Qantas customers. We’re very pleased to have been able to achieve this result.”

The agreement, reached without any admission of liability from Qantas, remains subject to approval by the Federal Court.

Importantly, the settlement builds on Qantas’ earlier commitment to refund COVID-era credits, announced shortly after the class action began in 2023.

That means eligible customers may now claim compensation in addition to any refund rights they already hold.

If the court approves the settlement, affected passengers will be notified directly and provided with details explaining how to lodge a claim.

Behind the scenes, the case has been run by Echo Law with Piper Alderman acting as agent solicitors, supported by litigation funders CASL and Omni Bridgeway.

Echo Law itself is a relatively new entrant in the legal landscape, founded in 2022, though its partners have worked on class actions that together have produced more than $850 million in settlements and resolutions.

For the aviation sector, the settlement is another reminder of how messy the pandemic years were for airlines everywhere.

Carriers around the world faced an almost impossible balancing act: fleets grounded, revenue evaporating and millions of passengers seeking refunds at exactly the same time.

Credits became a survival tool for airlines trying to conserve cash while keeping future bookings alive.

But as the Qantas case shows, what may have made sense during the height of the crisis didn’t always sit comfortably once the world started travelling again.

Should the Federal Court approve the settlement, the long-running dispute will finally edge toward closure.

And for many passengers still holding memories of those pandemic credits, that may feel like the last piece of unfinished travel business finally being ticked off.