Virgin Australia to Refund 61,000 Customers After Billing Error
Virgin Australia has announced refunds for 61,000 customers after an internal review uncovered overcharges on itinerary changes. The airline admitted to the pricing mistake and committed to issuing refunds, averaging $55 per passenger.
Virgin Australia’s $3.4M Refund Bombshell: 61,000 Passengers Overcharged [Aviation Spotter Online]
Millions Overcharged Over Five Years
The overcharging affected bookings changed between April 2020 and March 2025. The company said the total amount overcharged reached approximately $3.4 million, including GST.
A spokesperson explained the issue, stating, “Some bookings were repriced in a way that does not align with our policy and, we are refunding all impacted guests for that amount.”
The company launched an Itinerary Change Claim Program to contact affected customers and ensure they receive their refunds.
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Refunds Managed by Deloitte
Deloitte will oversee the claims process, which will remain open for 12 months. Customers can apply through an online portal. Virgin Australia also stated that any unclaimed refunds would be donated to charity.
“A dedicated Virgin Australia team has also been working to fix the issue and we have undertaken a range of actions to prevent this from reoccurring in the future,” the spokesperson added.
Regulator Investigates the Refund Process
The Australian Competition and Consumer Commission (ACCC) confirmed it had been notified of the situation. The regulator is currently assessing whether Company’s corrective actions are sufficient.
Virgin Australia assured passengers it would cooperate fully with the ACCC and implement any additional measures required.
Virgin’s Financial Future and Stock Market Plans
This announcement comes as Virgin Australia’s owner, Bain Capital, prepares to relist the airline on the Australian Stock Exchange (ASX). Bain Capital, a US-based private equity firm, acquired Virgin Australia in 2020 following its collapse during the COVID-19 pandemic.
The refund initiative aligns with the company’s efforts to regain customer trust before re-entering the stock market.
New Leadership and Qatar Airways Investment
Virgin Australia recently appointed Dave Emerson as its new CEO after Jayne Hrdlicka announced her retirement in February.
The airline also received government approval for Qatar Airways to acquire a 25% stake in the company. This partnership aims to strengthen The company’s international presence and improve competition in the Australian aviation sector.
Customers Urged to Check Eligibility for Refunds
Passengers affected by the pricing error are encouraged to visit company’s claim portal to verify their eligibility. The airline reassured customers that it remains committed to transparent pricing and fair business practices.
“At Virgin Australia, we want to do the right thing and that means acknowledging when we get things wrong and fixing it,“ the spokesperson said.
The company refunds will be processed in the coming months, with all impacted customers expected to receive direct communication from the airline.
