Last Thursday, a significant pricing error led to a brief window where first-class round-trip tickets from Australia to the US, normally priced up to 28,000 Australian dollars (approximately $19,000), were available from Qantas at a staggering 85% discount. About 300 fortunate individuals were able to purchase these tickets for as low as $3,400 each before the error was corrected.
Qantas’ Response and Compensation
In a statement, Qantas acknowledged the mistake, stating, “Unfortunately, this is a case where the fare was actually too good to be true.” Rather than canceling the tickets, the airline has decided to rebook affected customers in business class at no additional cost as a gesture of goodwill. Passengers dissatisfied with the business class option will be eligible for a full refund.
Comparison of Business Class Costs
Flying business class with Qantas between Australia and the United States generally costs around $11,000, making the airline’s compensation a substantial offer in light of the error.
Previous Pricing Error and Legal Issues
This incident follows a previous blunder by Qantas from August last year, where the airline was sued by Australian regulators for selling tickets for more than 8,000 canceled flights. This affected over 86,000 passengers. In May, Qantas agreed to a nearly $80 million settlement, with more than $13 million allocated to the impacted customers. CEO Vanessa Hudson admitted in June that the airline had “let our customers down,” as well as its staff.
Historical Context of Ticket Pricing Errors
Pricing errors are not uncommon in the airline industry. In 2019, Cathay Pacific honored a mistake that offered first- and business-class seats from Vietnam to North American cities for as low as $675 round-trip. The airline affirmed its commitment to honoring the deal with the hashtags #promisemadepromisekept and #lessonlearnt on its X account.
Conversely, American Airlines did not honor a 2010 error that sold first-class tickets from the US to Australia, worth up to $20,000, for just $1,100. Instead, the airline offered $200 vouchers as compensation. Similarly, British Airways did not honor mistakenly sold $40 flights from North America to India in 2009, providing $300 vouchers instead.
Conclusion
Qantas’ handling of the recent pricing error highlights the complexities of dealing with such issues. By offering business class as compensation or full refunds, the airline aims to address the error while maintaining customer goodwill. This incident serves as a reminder of the occasional pricing mishaps in the airline industry and the varied responses they elicit from carriers.