Virgin Australia has bowed to mounting political and consumer pressure, extending the travel window for its remaining COVID‑19 flight credits.
The airline had faced fierce criticism over its plan to let unused credits – worth about $93 million – expire at the end of June, a move consumer advocates and politicians labelled unfair and unacceptable.
The credits were originally issued to travellers whose flights were cancelled between April 2020 and July 2022 due to pandemic restrictions. It is believed that tens of thousands of customers still hold credits with the airline.
Under the previous rules, customers were required to book and complete their travel by June 30 or lose the remaining value.
That deadline has now been softened: while customers must still redeem credits by June 30, they will be able to travel as late as May 27, 2027, giving them nearly an extra year to use the flights they already paid for.
The backdown follows a public rebuke from Shadow Transport Minister Senator Bridget McKenzie, who accused Virgin Australia of attempting to “pocket” customer money and described the looming expiry as “unconscionable.”
She argued that travellers accepted credits instead of refunds during the pandemic in good faith, helping keep the aviation sector afloat during its most turbulent period.
“COVID travel credits are not loyalty points, they are customer money,” she said, urging the airline to extend deadlines or issue refunds.
Consumer groups echoed the criticism, noting that many Australians – particularly those in regional areas – may have struggled to use their credits due to cost‑of‑living pressures, limited travel opportunities, or sharply higher airfares compared with pre‑pandemic prices.
Virgin Australia maintains that it has made “extensive efforts” to contact affected customers and emphasises that more than 90 per cent of all COVID‑era credits – worth more than $1bn – have already been redeemed.
“For customers who still hold a remaining balance, this extension provides additional flexibility to plan and take future travel,” CEO Dave Emerson told media outlets.
The airline also highlighted that credits can be used on Virgin‑operated flights as well as partner airlines and can be applied to bookings for friends or family members.
