Australia Battles Historic Floods as Qantas Settles $105 Million COVID Credit Dispute

Northern Australia faces devastating floods forcing mass evacuations while Qantas agrees to pay $105 million to settle a class action over COVID-era flight credits.

Record-Breaking Floods Devastate Northern Australia

Northern Territory and Queensland are grappling with some of the worst flooding in decades, forcing thousands of residents from their homes and prompting widespread evacuations across the region. The Katherine River peaked at a 28-year high earlier this week, while the Burnett River in Bundaberg reached approximately 24.3 feet (7.4 meters), affecting around 280 homes and 120 businesses.

Emergency crews have evacuated more than 1,000 people across the Northern Territory, with helicopters and aircraft deployed to remote communities including Palumpa, Jilkminggan, and Nauiyu along the Daly River. The flooding has been so severe that authorities spotted a saltwater crocodile on Katherine’s local football oval, prompting urgent warnings about the dangers lurking in rising floodwaters.

Infrastructure Collapses as Communities Remain Isolated

Major transport arteries across both states have been severed by the deluge. Sections of the Stuart, Victoria, Roper, and Buchanan highways remain closed, effectively isolating thousands of residents. In Bundaberg, the closure of two major bridges has cut off approximately 10,000 people from essential services.

The economic impact is mounting rapidly. Local farmers are expecting huge losses, while insurers are closely monitoring what could become one of Queensland’s most expensive flood events in recent years. About 2,000 properties lost power across the Bundaberg region alone, with water treatment systems compromised, forcing residents to boil drinking water. Seven schools in Katherine and five across the Big Rivers region remain closed as authorities assess safety conditions.

Government Response and Financial Support

Both federal and state governments have mobilized extensive disaster relief efforts. The Albanese and Crisafulli governments have activated Personal Hardship Assistance for affected areas, with emergency payments extending until April 7, 2026, for some regions.

In the Northern Territory, affected residents can access immediate relief payments of up to $611 (approximately $400 USD) per adult and $309 (about $200 USD) per child, plus temporary accommodation assistance of up to $1,160 (roughly $760 USD) per family. Queensland residents are eligible for Emergency Hardship Assistance providing $180 (about $120 USD) per person, with additional grants available for structural repairs and household contents. Federal Minister for Emergency Management Kristy McBain visited Katherine to assess the situation firsthand, emphasizing the government’s commitment to long-term recovery efforts.

Qantas Settles Major COVID Credit Dispute

In separate business news, Qantas has agreed to pay $105 million (approximately $69 million USD) to settle a class action lawsuit over its handling of COVID-era flight credits. The settlement, announced Friday and subject to Federal Court approval, resolves allegations that the airline breached contractual obligations by issuing restricted flight credits instead of cash refunds for flights cancelled between January 2020 and November 2022.

Echo Law, which led the class action, argued that hundreds of thousands of customers were entitled to full cash refunds rather than credits with expiry dates and usage restrictions. The settlement makes no admission of liability by Qantas and is additional to any refunds the airline has already provided. Partner Andrew Paull described it as ‘a very significant financial settlement which will see compensation put into the hands of hundreds of thousands of Qantas customers.’

Climate Concerns and Recovery Outlook

The current flooding event highlights the increasing vulnerability of northern Australia to extreme weather patterns. Meteorologists warn that additional rainfall over already saturated catchments could prolong flooding across both territories as the wet season continues. This marks the fourth significant flood to hit parts of Bundaberg in 15 years, with the 2013 event causing $2.4 billion in damage and forcing 7,000 evacuations.

Recovery efforts are expected to take weeks or even months. In Bundaberg, floodwaters are slowly receding but remain at major flood levels, with water still moving through the wider Burnett catchment. Emergency services continue around-the-clock operations, while community organizations and volunteers work to support displaced residents. The Qantas settlement, meanwhile, is expected to be finalized by the end of 2026, providing some financial relief to customers still dealing with pandemic-era travel disruptions.