The New Zealand Commerce Commission fined Jetstar Airways NZD2.25m for breaching the Fair Trading Act by misleading consumers regarding compensation for flight delays and cancellations.
Jetstar Airlines incorrectly denied valid claims, violating the Civil Aviation Act, which requires compensation for delays caused by airline control issues. The commission found that internal policy flaws allowed staff to decline legitimate claims, prompting the enforcement action.
Jetstar has compensated 2,692 affected customers with NZD1,039,390 following the commission’s actions, acknowledging its errors during the COVID restart. The airline has stated it has implemented corrective measures to prevent future mistakes related to customer compensation.
Jetstar shared in a written statement, “The misleading practices were the result of embedded shortcomings in Jetstar’s internal policies. We take full responsibility for these mistakes.”
