Qantas and ACCC reach $120 million settlement on airline selling cancelled flights

Qantas continued selling tickets on some flights that had already been cancelled. (ABC News: Chris Gillette)

Qantas has reached an agreement with the Australian Competition and Consumer Commission (ACCC) to settle a lawsuit against the airline for selling seats on flights that had already been cancelled.

Under the settlement, Qantas will institute a remediation program for affected passengers, with payments ranging from $225 to $450, and expected to total about $20 million.

Subject to the approval of the Federal Court of Australia, the airline will also pay a $100 million civil penalty to the federal government.

Qantas said it intends to commence the remediation program in advance of the court approval process.