Virgin Australia to Refund 61,000 Overcharged Customers
Virgin Australia has announced that it will be refunding 61,000 customers who were overcharged on bookings made between April 2020 and March 2025. The airline revealed the error after disclosing the issue to the Australian Competition and Consumer Commission (ACCC), and it is now working closely with the regulator to resolve the matter and ensure affected customers are reimbursed.
The overcharging occurred when changes were made to customers’ itineraries during the period from April 21, 2020, to March 31, 2025. Virgin Australia calculated that around 61,000 bookings were affected, with each customer set to receive an average refund of AUD55 ($60). The total refund amount could reach approximately AUD3.3 million ($2.1 million), based on the average refund figure.
“We recently found that in some instances, from April 21, 2020, to March 31, 2025, some bookings were repriced in a way that does not align with our policy, and we are refunding all impacted guests for that amount,” a Virgin Australia spokesperson explained. The airline also expressed its sincere apology to those affected, stating that it had launched an “Itinerary Change Claim Program” to proactively contact customers and process their refunds.
The airline has not yet disclosed the total amount of the overcharges but emphasized that a dedicated team has been investigating the cause of the error. Preventative measures have already been implemented to prevent future occurrences. These include fixing a specific technical issue in the booking system and reviewing the airline’s policies and processes to ensure better governance moving forward.
To assist with the large number of claims expected, Virgin Australia has enlisted accounting firm Deloitte to manage the online itinerary change claim program. Customers will have up to 12 months to claim their refunds, and any unclaimed amounts will be donated to charity.
This refund announcement comes amid significant changes at Virgin Australia, including plans to relist the airline on the Australian Stock Exchange after five years under the ownership of Bain Capital, and a new partnership with Qatar Airways, which took a 25% stake in the airline in February 2025. Recently, Virgin Australia also appointed Dave Emerson as its new CEO following Jayne Hrdlicka’s retirement in 2024.
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