Virgin Australia is holding onto $93 million worth of unclaimed flight credits issued for travel cancelled due to COVID-19. The airline has now expanded the travel window for eligible rebooking under the credit scheme, but the window to book those flights still closes in 11 days.
Extended Travel Window
The scheme initially stated that COVID credits could only be redeemed for travel before June 30, but that window was extended following backlash and comparison to other airlines. Jetstar COVID credits do not have an expiry date.
Virgin customers can now rebook flights set to depart up until May 27, 2027, with their COVID credits. However, any credits that have not been used before June 30 to book a flight or product will be pocketed by the airline.
CEO Statement
“We’re extending the travel period for COVID credits and stepping up our customer outreach and awareness efforts to encourage customers to check their balances and use any remaining value for a booking before June 30, 2026,” Virgin Australia CEO Dave Emerson said.
Flexible Usage
“Credits can be used for passengers not on the original booking, such as friends and family members,” Virgin Australia said. COVID credits can also be used to purchase add-on products, seating, extra checked baggage, carbon offset fees, or payment for the travel of pets and unaccompanied minors.
Background
The credits were issued between April 2020 and July 2022, when travel disrupted by COVID had recommenced but consumers remained uncertain about flying. The remaining $93 million in unclaimed flight credits represents just 10 per cent of the COVID credits that the airline issued, worth more than $1 billion in total.
More than 90 per cent of the remaining unused credit accounts have had no activity for over three years.
