Jetstar has been hit with a fine of $2.25 million for misleading customers over their compensation rights
The Auckland District Court ruled Jestar NZ misled customers over their consumer rights for flights delayed or cancelled.
It marks one of the largest fines under the Fair Trading Act.
Around 2,700 customers have already been compensated for flight delays and cancellations relating to action in 2022 and 2023
The airline was charged with 20 counts of misleading statements about the compensation.
“Jetstar’s conduct was serious, widespread and deserving of one of the biggest penalties ever imposed under the Fair Trading Act,” spokesperson Vanessa Horne said.
“Our investigation found that the misleading practices were the result of embedded shortcomings in Jetstar’s internal policies and instructions.”
Horne said thousands of New Zealanders were ‘left out of pocket after their claims were unfairly denied, especially when people often had to spend extra on last-minute flights and accommodation.’
When a flight is cancelled for a reason that is within an airline’s control, passengers have the right to claim compensation for ‘reasonable costs’ which can be up to 10 times the cost of the original ticket price.
Qantas owned Jetstar said: “We are deeply sorry for letting our New Zealand customers down”.
“A $2.25 million penalty sends a clear message that airlines cannot mislead passengers and expect to get away with it,” Consumer NZ CEO Jon Duffy said.
