Virgin Australia is under increasing pressure to reconsider its decision to let COVID-19 travel credits expire in the coming weeks. These credits were issued to customers who had bookings cancelled between April 21, 2020, and July 31, 2022, due to restrictions related to the pandemic.
Travelers who still hold these credits are required to book and complete their journeys before June 30. This has sparked a call from Senator Bridget McKenzie for Virgin Australia to eliminate the expiry dates, offer additional extensions, or provide refunds for any unused credits.
Senator McKenzie highlighted that these credits are not loyalty points but rather customer money. She emphasized that many customers chose to take credits instead of refunds during a challenging time for the aviation industry, supporting airlines to keep operating.
“Now, Australians are being told that if they cannot use those credits before June 30, that money disappears. This is simply not fair,” she said.
McKenzie also pointed out that regional Australians might be disproportionately affected by the current expiry dates. For many in these communities, travel is essential for healthcare, work, family, and business purposes. She argued that these communities should not face penalties due to limited travel opportunities.
“If Virgin can hold approximately $93 million in unused customer credits, Australians deserve answers about how much of that money is expected to return directly to the company rather than back to consumers,” she added.
A Virgin Australia spokesperson stated that over 90% of the COVID credits have been redeemed by passengers, reflecting strong uptake over the past four years. The airline emphasized that the credits were designed to be easy to use, allowing customers to apply them to all flights operated by Virgin Australia as well as flights on partner airlines.
Additionally, the credits could be used for passengers not on the original booking, such as friends and family members. The airline mentioned that it had been actively reaching out to customers to remind them to use their credits.
“Despite extensive efforts and regular reminders to our customers, the remaining credit balances are seeing almost no usage. Over 90% of remaining accounts with COVID credits have had no activity for over three years,” the spokesperson said.
The airline also noted that any unused credit can still be used on future flights up until June 30, either for the named individual or for a family member or friend.
This pressure comes after rival airline Qantas agreed to a $105 million settlement following a class action lawsuit over its controversial COVID-19 flight credits. The amount, subject to approval by the Federal Court of Australia, includes what the airline describes as “no admission of liability.”
