The airline cancelled and only offered a credit. Can I get a refund?
What the law says when an airline cancels your flight and offers only a credit, how to ask for cash and where to go if it refuses.
Yes, if the airline cancelled for a reason within its control. A credit is not a substitute for a refund you are owed under the Australian Consumer Law, and Jetstar, Qantas and Virgin Australia also cover hotel costs up to $200 a room. If the airline still refuses, your bank can reverse the payment through a chargeback or your state tribunal can order a refund.
Rather not chase this yourself?
Ajust writes to the business, tracks the deadline and escalates if they don't fix it.
Can you refuse the credit and ask for your money back?
Yes, when the airline cancelled for a reason within its control. A flight is a service under the Australian Consumer Law (ACL), so it must be supplied with due care and skill and within a reasonable time (sections 60 and 62).
The Australian Competition and Consumer Commission (ACCC) says that when a replacement flight is not offered within a reasonable time, the airline must give you your choice of another flight or a refund. Its guidance is that travel credits and vouchers are not equivalent to a refund and should not be used as a substitute when you are entitled to one.
An airline's own policy cannot take that right away. The ACCC says airlines cannot describe fares as non-refundable across the board or charge a fee for a refund the ACL entitles you to.
The exception is a cause outside the airline's control. The ACCC says the guarantees are unlikely to apply when a third party, such as a government restriction, causes the cancellation. Your booking terms then decide.
| What you can ask for | Cancelled for a reason within the airline's control | Cancelled for a reason outside its control |
|---|---|---|
| Refund to your original payment method | Yes, if the replacement is not within a reasonable time | Per your booking terms |
| Another flight at no cost | Yes, your choice | Usually offered |
| Credit or voucher | Only if you choose it | Usually offered |
| Hotel, meals and transport while away from home | Claim with receipts | Not usually |
Jetstar, Qantas and Virgin Australia each say they cover overnight accommodation up to $200 a room when a cancellation within their control leaves you away from home. Their published compensation policies also cover meals at about $30 a person.
Ajust has handled over 100 cases about cancelled flights where the airline offered a credit, and secured a confirmed result in 54% of closed cases.
- In these cases the typical amount at stake is about $1,200.
- When Ajust secured a result, it typically came about 9 days after the written demand.
- In Ajust's cases, Jetstar has paid hotel, meal and taxi costs of about $240–285 when the receipts went in with the claim.
If an airline cancels your flight for reasons within its control, the Australian Consumer Law may entitle you to a refund rather than a flight credit.
What should you do first?
Step 1: Keep the cancellation notice and don't accept the credit
Save the email or text, screenshot the options offered and note the reason the airline gave. If the only button says accept credit, leave it. Keep every receipt for the hotel, meals and transport the cancellation cost you.
Step 2: Ask for the refund in writing and set a deadline
Use the airline's complaints form or email so the request sits on a record. Give the airline 14 days and put any out-of-pocket costs in the same message.
Subject: Refund request for cancelled flight [flight number], [date], booking [reference]
You cancelled my flight [flight number] on [date]. The reason you gave was [reason], which was within your control. You offered me a credit and no replacement flight within a reasonable time.
Under the Australian Consumer Law (sections 60 and 62) I am entitled to a refund to my original payment method. I do not accept the credit. The ACCC's guidance is that a credit is not a substitute for a refund I am entitled to.
Because of the cancellation I also paid $[amount] for [hotel, meals, transport]. Receipts are attached. Please reimburse these reasonable costs as well.
Please refund $[fare amount] and $[costs amount] within 14 days of this email. If I have not received them by then, I will ask my bank for a chargeback for services not provided and take the matter further.
[Your name]
Step 3: If it's AirAsia, get a case on the system
AirAsia handles refunds through its AskBo chat on the AirAsia MOVE site and app, and you check progress by typing "Check Case Status". Ajust's recommended channel for AirAsia is email to callcentresf_au@airasia.com with your booking number, so there is a written record alongside the chat case.
AirAsia's support page says refunds generally take 30–90 working days to process, then 7–14 business days to reach a credit card. A refund request cannot be withdrawn once submitted, so choose the refund option, not a credit shell.
Step 4: Run a chargeback alongside if the deadline passes
If you paid by card, ask your bank to dispute the payment as a service not provided. You can do this while your complaint is still open; card time limits do not pause while you wait.
What if the airline still refuses?
Work up this ladder. Only the bank and the tribunal can actually reverse the payment or order the airline to pay, and you can run a chargeback and a complaint at the same time.
| Where | Covers | Time limit | What it can do |
|---|---|---|---|
| Airline complaints team, then internal review | Every airline | None, but go straight away | Pay the refund and costs |
| Airline Customer Advocate | Qantas, Jetstar and Virgin Australia | 12 months, after the airline's review | Chases a reply within 20 working days; cannot order a refund |
| Chargeback through your bank | Card payments, any airline | Visa generally 120 days from the date you were due to fly; ask your bank for Mastercard | Reverses the payment; a decision can take up to 8 weeks |
| State Fair Trading or Consumer Affairs | Any airline | None | Contacts the airline; cannot order a refund |
| State tribunal (NCAT, VCAT, QCAT) | Any airline selling in Australia | NCAT 3 years | Orders payment. NCAT hears claims up to $100,000, QCAT up to $25,000 |
If Qantas, Jetstar or Virgin Australia doesn't resolve it, it can be escalated to the Airline Customer Advocate, a free service. Ajust handles the escalation for you, and for other airlines takes it to your state agency or tribunal instead.
If your bank mishandles the chargeback, the Australian Financial Complaints Authority (AFCA) reviews it at no cost to you.
A new aviation ombuds scheme is not in force yet. The Aviation Consumer Protection Bill 2026 passed the House of Representatives on 29 June 2026 and was before the Senate when this page was reviewed on 9 October 2026. Until it commences, your rights come from the ACL. More on what the Airline Customer Advocate can do.
Tell Ajust what happened and we do the heavy lifting for you. Emails, calls, escalations until it's resolved. While you get on with your life.
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What doesn't work
- Clicking accept credit in the cancellation email. Airlines treat that as your choice. If you already did, say in writing that you were not offered the refund first.
- Cancelling the booking yourself. It can turn the airline's cancellation into a change of mind, and the fare rules then apply.
- Accepting non-refundable as the answer. That rule covers you changing your plans, not the airline cancelling.
- Chasing by phone and live chat only. Banks, the Airline Customer Advocate and tribunals all ask for the written request and the written reply.
- Throwing away the receipts. Hotel, meal and transport costs are only paid against receipts.
- Waiting out months of processing replies. The chargeback window keeps running while you wait.
Common questions
I already accepted the credit. Can I still get my money back?
Often, yes. NSW Fair Trading says a credit is only acceptable if you agree to it after being offered a full refund. If the airline cancelled for a reason within its control and never offered the refund, write to it, say so and ask for the refund to your original payment method.
Can I claim the hotel I paid for when my flight was cancelled?
Yes, when the cancellation was within the airline's control and left you away from home. Jetstar, Qantas and Virgin Australia publish caps of $200 a room for accommodation and about $30 a person for meals. Send the receipts with your refund request so both are decided together.
I booked through a travel agent or booking site. Who refunds me?
Whoever took your payment. The airline refunds the agent and the agent refunds you, so put the request to the agent in writing. If the agent stalls, a chargeback goes against it, because it is the merchant on your card statement.
The airline says the cancellation was outside its control. Do I get anything?
Your booking terms decide. The ACCC says the consumer guarantees are unlikely to apply when a third party, such as a government restriction, caused the cancellation. Ask the airline to state the cause in writing. Jetstar's own policy lists engineering, crewing and IT outages as within its control.
Does this apply to AirAsia, Emirates or Qatar Airways?
Yes, if the flight leaves Australia or you bought it from the airline's Australian site. The ACL applies to overseas businesses selling to Australian consumers. The Airline Customer Advocate does not cover foreign airlines, so the route is a chargeback, your state agency and tribunal. This is the point most people hand it over to Ajust.
How long should a refund take?
It depends on the airline and how you paid. AirAsia says processing generally takes 30–90 working days, plus 7–14 business days for a card refund to appear. If 14 days pass after your written request with no answer, or the airline repeats the credit offer, escalate rather than wait.
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