After criticism from the Australian Competition and Consumer Commission, Etihad Airways will refund customers who booked tickets in Australia for Etihad flights that were later cancelled.
Customers who had already been forced to accept a credit voucher may still get a full refund.
The Abu Dhabi-based airline or the respective Australian travel agencies will directly contact customers.
The ACCC called out Etihad because its rebooking policy from 26 March to 3 June did not offer the right to a refund for cancelled flights due to the pandemic.
The airline later updated its policy for flights departing Australia.
"Etihad’s revised policy, and its decision to also offer refunds to consumers who weren’t previously advised of their right to a refund, should serve as a model for other airlines," said ACCC chair Rod Sims.
The ACCC last month was heavily critical of Qantas for failing to inform its customers they were entitled to refunds.
The ACCC acted after it received hundreds of complaints.
