Qantas Responds to Pricing Glitch: Refunds and Downgrades for Discounted First-Class Tickets

Qantas has announced plans to refund or downgrade hundreds of passengers who snagged first-class flights at a substantial discount due to a coding error on its website.

The Australian airline discovered the mistake last Thursday, which led to approximately 300 travelers booking round-trip flights between Australia and the US at a fraction of the normal first-class fare—up to 85% less. The glitch allowed these fortunate customers to purchase tickets that typically cost over AUD 20,000 (£10,000) for just a few thousand Australian dollars.

The steep discount included perks like top-shelf whiskey and champagne, an à la carte dining menu, a memory foam mattress, and a “pillow menu” for maximum comfort. However, Qantas has stated that it will correct the situation by downgrading affected passengers to business class at no additional charge.

In a statement, the airline emphasized that the drastic discount was due to an error and invoked its terms and conditions, which allow it to cancel bookings and provide a full refund if a fare mistake is clearly evident. “Unfortunately, this is a case where the fare was actually too good to be true,” a Qantas spokesperson commented.

As a goodwill gesture, Qantas will rebook those who booked the erroneous fares into business class, still at a significantly reduced price. Passengers will also have the option to receive a full refund if they prefer. Those rebooked into business class will end up paying around 65% less than the usual price for that class.

This incident isn’t unprecedented in the airline industry. In 2019, Cathay Pacific made headlines when it mistakenly sold $16,000 business-class tickets for just $675, eventually honoring those fares for the lucky buyers. Conversely, British Airways took a different approach in 2018 when it canceled tickets sold at £1 instead of the intended £200 between Dubai and Tel Aviv.

Qantas’s approach highlights the delicate balance airlines must maintain between correcting errors and maintaining customer goodwill. While some airlines choose to honor such mistakes, others enforce their fare conditions strictly to avoid significant financial losses.

The Qantas glitch underscores the complexities of pricing algorithms and the impact of digital errors on both consumers and businesses. As the situation develops, affected passengers will need to decide whether they are satisfied with the business class alternative or opt for a full refund.