Qantas Airways has agreed to pay approximately $74 million to settle a class action lawsuit related to its handling of flight cancellations during the Covid-19 pandemic.

The lawsuit centered on the Australian carrier's decision to offer flight credits rather than immediate cash refunds to customers whose flights were canceled during the pandemic. The settlement resolves claims from passengers who argued they should have received cash refunds instead of travel vouchers.

The case reflects broader disputes that emerged during the pandemic as airlines worldwide grappled with unprecedented flight cancellations while trying to preserve cash flow. Many carriers initially offered credits or vouchers rather than cash refunds, leading to customer complaints and regulatory scrutiny in various countries.

The settlement amount represents a significant financial resolution for Qantas, which like other airlines faced severe operational and financial challenges during the pandemic travel restrictions. The agreement allows the company to resolve the legal dispute without admitting wrongdoing.

Details of how the settlement funds will be distributed to affected passengers and the timeline for payments were not immediately available. The case had been proceeding as a class action, potentially covering thousands of customers who received credits instead of cash refunds during the pandemic period.