Understanding Virgin Australia’s Expiring Flight Credits
If you had a flight ticket that was cancelled during the COVID-19 pandemic, you may have received a travel credit. However, if your credit is from a cancelled Virgin Australia flight, it’s important to note that these credits will expire on 30 June. This deadline applies to credits issued between 21 April 2020 and 31 July 2022.
Virgin Australia has made it clear that simply booking a flight before the deadline isn’t enough. The airline insists that customers must also complete their travel by 30 June. According to a spokesperson, “Any unused credit can still be used on future flights up until 30 June, with Virgin Australia or our partners, either for the named individual or for a family member or friend.”
Despite this, Virgin Australia reports that more than 90% of credits issued during the pandemic have already been claimed. The airline noted that many remaining accounts with credits have seen no activity for over three years. A financial outlook published in late February indicated that the airline holds approximately $93 million in unclaimed credits.
Qantas and Jetstar: Different Approaches to Credits
Qantas initially faced criticism for setting expiry dates on its pandemic-related flight credits. However, the airline later decided that these credits would not expire. Despite this, there are limitations on how these credits can be used. Customers with Qantas flight credits can no longer use them to book flights. Instead, credits for bookings made on or before 30 September 2021 can only be redeemed as refunds.
However, these refunds aren’t processed automatically. Qantas requires customers to contact the airline directly to request a refund. The airline sends reminders via emails, text messages, and phone calls to those with unclaimed credits.
Jetstar, a subsidiary of Qantas, also updated its terms to ensure that its pandemic-related flight credits do not expire. The airline communicated these changes to customers via email and provided updates on their vouchers.
Advocates Call for Refunds
Andy Kelly, communications and campaigns director at Choice, argues that Virgin should offer refunds to customers who haven’t used their credits by 30 June. He explains that many consumers booked flights for specific purposes, such as funerals or events, which may no longer be relevant. Additionally, the cost of flights could have increased significantly, making it difficult for some to use their credits.
Under Australian Consumer Law, consumers are generally entitled to a refund if an airline cancels a flight, unless the cancellation is due to third-party actions like government-imposed travel restrictions. In such cases, the terms and conditions of the airline determine the available remedies. Kelly believes that consumers should have the option to receive a refund rather than having to rebook flights or navigate complex processes.
Why Virgin Isn’t Offering Refunds
Virgin Australia claims that its COVID credits were designed to be easy to use, allowing customers to apply them to any flights operated by Virgin or its partner airlines. The airline also allows credits to be used for passengers other than those on the original booking, such as friends or family members.
Qantas and the Challenges of Refund Processing
Qantas states that customers are responsible for initiating refund requests. One reason for this is that many credit cards used for original bookings may have expired, causing automatic refunds to bounce back. The airline notes that credits offered for bookings made on or before 30 September 2021 can only be used as refunds.
Added Friction and Consumer Concerns
Advocates warn that airlines may add friction to the process of using credits or requesting refunds. This could involve placing restrictions on credits or requiring customers to wait on hold to rebook or claim refunds. Such practices could discourage consumers from using their credits or seeking refunds.
How to Claim Your Travel Credits
The process for claiming travel credits depends on the airline:
Jetstar: You should have received an email with your Jetstar Airways COVID voucher. Customers can claim their voucher by booking through the airline’s website and selecting the “use a voucher or a gift card” option at checkout. You’ll need to enter your voucher number. Alternatively, you can book over the phone and quote the voucher number as a payment method. Jetstar points customers to an online portal where they can check their flight credit balance.
Qantas: If you booked directly with Qantas, you can call 1300 668 885 (within Australia) or +61 2 9123 7495 (outside Australia) to request a refund. If you booked through a travel agency, you’ll need to contact them directly. Qantas also provides a way to check for outstanding credits by providing details about the original flight booking.
Virgin Australia: All travel credits should be available via the “travel bank,” an account set up by the airline. Customers who have credits in their travel bank should have received an email with login details. You can use these credits by booking flights directly through the Virgin Australia website and selecting the “travel bank” option on the payment page. Alternatively, you can book over the phone. If you’re unsure about your travel bank details, you can visit the dedicated website to retrieve them.
Virgin Australia encourages customers who believe they may have unused flight credits to contact the airline. You can reach the guest contact centre by calling 13 67 89.
