Can airlines refuse refunds for cancelled flights in Australia?
No, airlines generally cannot refuse a refund if they cancel your flight in Australia. Under the Australian Consumer Law (ACL), if a business fails to deliver a promised service, you are entitled to a suitable remedy, which typically includes a full refund, not just a travel credit.
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How it works in practice
Consumer Guarantees and Flights
Under the Australian Consumer Law (ACL), consumer guarantees apply to commercial flights. When you purchase a ticket, the airline is legally obligated to provide the transport service within a reasonable timeframe.
Your Right to a Refund
If an airline cancels your flight, they have failed to meet this basic consumer guarantee. In this situation, the airline must offer you a choice of a suitable remedy. This typically means you are legally entitled to receive a full refund to your original payment method.
Credits vs. Cash Refunds
Airlines often try to offer travel vouchers or flight credits by default when they cancel a service. While you can choose to accept a voucher if it suits your future travel plans, the airline cannot legally force you to accept a credit instead of a cash refund if they are the party that cancelled the service.
Assessing the Situation
Your exact entitlements can depend on the circumstances surrounding the cancellation, such as whether it was within the airline's control. However, the fundamental protection remains that businesses cannot keep your money if they fail to provide the service you purchased.
Important exceptions
There are specific circumstances where an airline might not be legally required to provide a cash refund.
If the flight cancellation is caused by an event completely outside the airline's control—such as severe weather events, natural disasters, or unexpected government border closures—your right to a refund may depend on the airline's specific conditions of carriage rather than consumer guarantees.
Additionally, if you purchased a strictly non-refundable ticket and you choose to cancel the flight yourself, rather than the airline cancelling it, you are not entitled to a cash refund under the law.
What you should do now
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Review your airline's specific conditions of carriage and cancellation policy to understand their official stance.
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Contact the airline's customer service department directly and firmly request a full refund to your original payment method.
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Decline any travel vouchers or flight credits if you prefer a cash refund for the cancelled service.
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Lodge a formal complaint with the Airline Customer Advocate if the airline refuses to process your legitimate refund request.
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File a dispute or chargeback request with your credit card provider if the airline continues to unlawfully withhold your money.
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