Virgin Australia has acknowledged a long-running system fault in its ticket repricing mechanism that resulted in the overcharging of tens of thousands of travelers over a five-year period. The airline has confirmed it will refund more than 61,000 affected customers after uncovering the error, which impacted itinerary changes made between 2020 and 2025.
According to Sky News, the issue stemmed from a misalignment in fare calculations that contradicted the airline’s own pricing policy. The carrier has since apologized and launched a comprehensive refund initiative to address the situation and reassure customers about its commitment to fair and accurate billing.
Repricing Flaw Affected Bookings Over a Five-Year Period
The airline identified a long-standing discrepancy in how it reprices a traveler’s booking when they change their itinerary. Between April 2020 and March 2025, affected bookings were recalculated “in a way that does not align with the airline’s policy,” leading to unintended fare increases.
Virgin Australia stated that this error involved approximately 0.1% of all bookings made during that period. In total, 61,000 guests were impacted, with an average refund per guest of $55 (including GST).
In response, the airline has launched a dedicated Itinerary Change Claim Program. According to a spokesperson,
We sincerely apologise to those affected guests and have launched an Itinerary Change Claim Program under which all eligible guests are being proactively contacted to process their refunds.
The program will allow affected customers to file their refund requests over the coming 12 months, with full guidance already communicated to those eligible.
Deloitte Appointed to Accelerate Claim Processing
Virgin Australia has appointed Deloitte to manage and accelerate the claim process. The carrier has also proactively notified the Australian Competition and Consumer Commission (ACCC) after discovering the issue.
A dedicated Virgin Australia team has also been working to fix the issue and we have undertaken a range of actions to prevent this from reoccurring in the future, so our guests can be confident when making changes to their bookings – the spokesperson said.
The incident coincides with a broader leadership and strategic transition at the airline. Dave Emerson recently stepped in as CEO, taking over from Jayne Hrdlicka, under whose leadership Virgin Australia had previously pursued a public listing.
The airline is again preparing for an ASX listing, a move that had been delayed over recent years. This pricing issue marks an operational challenge at a sensitive time for the company’s governance and public image.
New Partnership With Qatar Airways
Separately, Virgin Australia has also received regulatory approval for a strategic partnership with Qatar Airways. The agreement will allow the Australian carrier to connect to the Middle East and beyond using Qatar Airways’ international fleet and network, expanding its global footprint.
While the pricing error affected a small fraction of total bookings, the high number of passengers involved has prompted Virgin Australia to commit to more robust internal safeguards.
By launching an extended claims process, enlisting a third-party auditor, and engaging directly with regulators, the airline is taking visible steps to reinforce transparency and customer trust as it enters a new phase of growth and leadership.
