Qantas to pay $89m penalty over 'ghost flights'

Aussie airline will also compensate those who bought tickets on flights already axed

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Qantas Airways will pay a A$100 million (S$89 million) penalty and compensate passengers for selling tickets on thousands of flights it had already decided to cancel, as chief executive officer Vanessa Hudson continues costly repairs to the airline's battered reputation.

Under a deal with Australia's competition watchdog, Qantas will also pay between A$225 and A$450 to more than 86,000 impacted customers as part of a A$20 million remediation programme, the airline said on May 6.

The deal settles a fiery legal dispute between Qantas and the Australian Competition and Consumer Commission (ACCC) that in 2023 triggered the early retirement of then CEO Alan Joyce and led to a boardroom clean-out to repair the company's brand.