The Zhitong Finance App learned that Qantas (QUBSF.US) agreed to pay 120 million Australian dollars (about 79 million US dollars) on Monday to settle lawsuits by regulators against the sale of cancelled flight tickets. This move is aimed at resolving the reputation crisis faced by the company. According to the settlement agreement, Qantas will distribute 20 million Australian dollars to more than 86,000 passengers who have purchased so-called “ghost flight” tickets and pay a fine of 100 million Australian dollars instead of choosing to defend the lawsuit they had originally vowed to fight.

Although some banks and casino operators in Australia face higher fines for breaking the law, this is the largest fine in Qantas history and one of the largest fines for the airline industry worldwide.

The company's CEO, Vanessa Hudson (Vanessa Hudson), acknowledged the company's mistakes in a statement, saying, “We recognize that Qantas has disappointed customers and is not living up to our own standards.”

Hudson also added that through the settlement, the company can pay compensation to affected customers faster than continuing to hear cases in federal courts, but the court still needs to approve this settlement agreement.

If approved by the court, the settlement will resolve a dispute where the value of the Qantas brand has declined drastically due to a surge in complaints about flight cancellations. In August of last year, after the Australian Competition and Consumer Commission (ACCC) filed a lawsuit, Hudson's incumbent CEO Alan Joyce retired early.

ACCC Chairman Gina Cass-Gottlieb (Gina Cass-Gottlieb) said, “This penalty will send a strong deterrent message to other companies.” However, according to data from the London Stock Exchange Group (LSEG), analysts on average forecast Qantas' net profit for the fiscal year ending June to be 1.47 billion Australian dollars. Compared to this, this expenditure is insignificant.

Airlines and regulators said that passengers who purchased tickets for non-existent domestic flights will receive a refund of 225 Australian dollars, while passengers who purchased tickets for international flights will receive a refund of 450 Australian dollars.

Owen Birrell (Owen Birrell), an analyst at Royal Bank of Canada capital markets, said in a client note: “We think today's results are positive; it removes another post-pandemic brand and overvaluation problem with this stock.”

Qantas is still awaiting a court ruling to determine the amount it must pay to the nearly 1,700 ground workers fired in 2020, after the court ruled that the layoffs were illegal because the purpose of the layoffs was to stop the strike action.

According to information, the ACCC lawsuit focused on a few months after the Australian border reopened in 2022, when there was a surge in flight cancellations and lost luggage complaints around the world due to COVID-19 restrictions.

Qantas argues that it faces similar challenges to airlines around the world, but the ACCC said the company's actions violated consumer law. Allegedly, Qantas sometimes sells tickets a few weeks after the flight is cancelled.

ACCC's Cass Gottlieb pointed out that the settlement included a clause where Qantas promised not to repeat such acts.