Sunday, 4 May 2025
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AirlinesAustralia

Virgin Australia to Refund 61,000 Customers Over Five-Year Booking Error

  • Overcharges occurred on booking changes made between April 2020 and March 2025.
  • Average refund per affected customer is AU$55.
  • Unclaimed refunds after 12 months will be donated to charity.

Virgin Australia has acknowledged a long-standing pricing error that resulted in tens of thousands of passengers being overcharged for modifying their flight itineraries.

To manage the volume of claims efficiently, Deloitte Australia has been appointed to oversee the process. Virgin has promised to contact all eligible passengers directly, allowing them a full year to submit claims.

Virgin Australia Admits Overcharging Passengers, Launches Refund Program

The overcharging incident came to light during an internal audit by Virgin Australia, revealing inconsistencies in the pricing structure for itinerary changes. The affected period includes some of the most turbulent years for the aviation industry, spanning the COVID-19 pandemic and post-recovery phases.

In response, Virgin launched an Itinerary Change Claim Program, aiming to rectify the overcharges and restore customer trust. This initiative is part of broader efforts by the airline to improve transparency and service standards. The airline stressed that all affected guests would be contacted proactively.

The Australian Competition & Consumer Commission (ACCC) is now monitoring Virgin’s response to ensure compliance with consumer protection laws. The ACCC has not ruled out further action depending on how Virgin handles the situation moving forward.

This refund initiative also highlights a shift in how airlines are expected to handle pricing errors — with greater responsibility, transparency, and customer engagement.

Virgin Australia’s proactive approach marks a step toward restoring consumer confidence, emphasizing transparency, accountability, and corporate responsibility.

“It takes 20 years to build a reputation and five minutes to ruin it.” – Warren Buffett

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