Webjet Fined $6.1 Million Over Misleading Flight Prices & Booking Confirmations

Key Takeaways

• $6.1 Million Penalty: Webjet has been ordered to pay $6.1 million USD (AU$9 million) by the Federal Court for misleading conduct.
• False Advertising: Between 2018 and 2023, Webjet promoted airfares that excluded mandatory fees ranging from AU$34.90 to AU$54.90.
• Misleading Confirmations: Between 2019 and 2024, 118 customers received false booking confirmations and were later asked to pay up to AU$2,120 more.
• Revenue from Fees: These hidden fees made up 36% of Webjet’s total revenue during the period from November 2018 to November 2023.
• Regulatory Focus: The ACCC has flagged misleading pricing and surcharging practices as a key enforcement priority, especially in the travel and retail sectors.

Deep Dive

Online travel agency Webjet has been ordered to pay $6.1 million (AU$9 million) in penalties by the Federal Court after admitting to misleading consumers about flight prices and booking confirmations, following an investigation by the Australian Competition and Consumer Commission (ACCC).

Between 2018 and 2023, Webjet advertised airfares that failed to include mandatory fees—namely a “Webjet servicing fee” and a “booking price guarantee” fee—which ranged from AU$34.90 to AU$54.90 per booking depending on the destination. These fees were not clearly disclosed, especially in social media promotions, where they were omitted altogether. On the website and in emails, the information was often buried in fine print at the bottom of the screen.

In addition, Webjet admitted that between 2019 and 2024 it sent misleading booking confirmations to 118 consumers for flights that had not actually been secured. The company later asked those customers to pay up to AU$2,120 more to complete their bookings. All affected customers have since been refunded.

The ACCC brought the case after receiving a consumer complaint about a flight promoted as “from $18” that ultimately cost nearly three times that amount once compulsory fees were added.

“We took this case because we considered that Webjet used misleading pricing by excluding or not adequately disclosing compulsory fees in its ads,” said ACCC Chair Gina Cass-Gottlieb. “Seeking to lure in customers with prices that don’t tell the whole story is a serious breach of the Australian Consumer Law.”

The Federal Court also ordered Webjet to review its compliance program and contribute to the ACCC’s legal costs. The company cooperated with the investigation, admitted liability, and joined the ACCC in making submissions to the Court.

The penalty reflects the significance of the conduct, with the hidden Webjet fees accounting for 36% of the company’s total revenue between November 2018 and November 2023.

Webjet is a wholly owned subsidiary of Webjet Group Limited, listed on the ASX, and operates as an online travel agent through its website and app, offering flight bookings, hotels, rental cars, and travel insurance.

Misleading pricing tactics and deceptive surcharges remain an ACCC enforcement priority, particularly across travel and retail sectors where consumers continue to face unclear or hidden charges.

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