'Deeply unfair': Here's why some Qantas (ASX:QAN) customers are seeing red

Qantas is receiving customer backlash over its flight credit policy.

| More on:
a couple at an airline ticket counter have an angry exchange with the employee behind the counter. She is leaning forward in an aggressive manner as they hold a paper ticket in their hands.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Qantas shares finished down today after starting the year off well
  • Some of the airline's customers are unhappy about its flight credit policy, with many labelling it "unfair"
  • After a bumpy year, Qantas shares have climbed more than 16% in the last 12 months

The Qantas Airways Ltd (ASX: QAN) share price struggled today, closing 1.67% in the red at $5.31 apiece.

Whilst there's been no market-sensitive announcements out of the airline's camp today, news has surfaced that many of its customers are seeing red, accusing Qantas of jacking up its prices on certain flight bookings.

Let's take a closer look at what's being levelled at the company today.

Qantas in the firing line

Qantas customers have accused the airline of "dishonest" conduct and potentially "price gouging".

It's claimed Qantas is charging high premiums on airline bookings being made under its flight credit redemption scheme, according to the Australian Broadcasting Corporation.

Some customers say when they attempted to redeem flight credit vouchers, ticket prices were suddenly jacked up anywhere between 50%-300% higher than if they were to pay normally.

One customer said he paid more than three times the amount of a standard ticket under the scheme after Qantas restricted its seating options for voucher holders.

He ended up paying more than $1400 in flying credits for a return trip between Adelaide and Brisbane while his wife's ticket cost only $437 for the economy seat next to him.

A slew of similar stories has emerged over recent weeks with many customers reporting they were struggling to get a response from Qantas on its flight credit redemption policies.

Now it seems Qantas customers holding credits should be aware of a key — and perhaps not so well known — policy.

Last year, Qantas changed its policy so that credit holders making a booking after 30 September 2021 could only use their credit to purchase a ticket of equivalent value or a more expensive seat.

In other words, if you hold a flight credit of $1,400, you'll only find ticket options of $1,400 or more — even though the same seats might be available for much less if you were paying normally.

If the booking was made before 30 September, the flight credits could be used for multiple bookings.

Qantas says its policies offer "a lot more flexibility with booking than pre-COVID, but we still have some rules in place".

According to the airline, most customers who qualify for a flight credit have until the end of 2023 to take their flights.

Qantas share price snapshot

After a bumpy year, the Qantas share price has climbed almost 17% in the last 12 months. This year to date, Qantas is up 6%, after climbing 6.14% over the past month.

TradingView Chart

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Travel Shares

Man sitting in a plane seat works on his laptop.
Travel Shares

$10,000 invested in Qantas shares 5 years ago is now worth

Let's see what happened if you were brave and bought the Flying Kangaroo's shares in 2020.

Read more »

Woman on a tablet waiting in for her flight in an airport and looking through a window.
Travel Shares

Why have Qantas shares outperformed Flight Centre shares by more than 100% over the past 12 months?

The two share prices are travelling in opposite directions.

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

Qantas share price slips amid looming $121 million fine

Qantas continues to face legal issues stemming from the Covid pandemic years.

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Up 78% since April, why is the Webjet share price taking off again today?

Webjet shares have soared 78% since 4 April and are lifting off again today. But why?

Read more »

a young woman looks at here phone as she strides out in an airport dragging her wheelie bag behind her and smiling widely.
Travel Shares

Would I buy Qantas shares right now?

This ASX travel share has flown higher. Is it a buy?

Read more »

a woman drawing image on wall of big fish about to eat a small fish
Mergers & Acquisitions

Guess which ASX All Ords stock just received a takeover offer

A private equity firm has its eyes on this stock.

Read more »

A woman reaches her arms to the sky as a plane flies overhead at sunset.
Travel Shares

Qantas shares just hit $10. Can they fly higher?

Will Qantas shares reach a new all-time high in 2025?

Read more »

A corporate-looking woman looks at her mobile phone as she pulls along her suitcase in another hand while walking through an airport terminal with high glass panelled walls.
Travel Shares

After lowering its guidance, what's Macquarie's price target on Corporate Travel Management shares?

What does this broker have to say about the travel company?

Read more »