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Compare Travel Insurance Media Room › Jetstar cancellation and your refund rights

Jetstar cancellations: are you covered by travel insurance?

01/08/2023 By Natalie Smith 

Jetstar has disrupted thousands of passengers flights this year alone. So what are consumers liable for?

Thousands of Jetstar customers have had their flights cancelled in recent months due to a host of airline issues, with over 1,700* cancelled flights in April alone. Only 59.7% of its flights arrived on-time that same month.

Jetstar has also been accused of failing consumers, with customers complaining of inadequate compensation and sub-optimal service. The airline was even voted the third most unpopular airline in the world, according to a recent survey.

In addition, the airline’s travel insurance, which customers are advised to buy ‘when you book your flight’ provides scant cover for stranded passengers.

For instance, Jetstar’s travel insurance provider AIG states that it won’t cover 'cancellation, delays, or rescheduling caused by your covered transport provider, including Jetstar'. 

Meaning, should Jetstar cancel or reschedule a flight for reasons within its control, you would not be covered by their add-on travel insurance. Such circumstances can include IT system outages, mechanical reasons and crew/staffing issues.

Natalie Ball, director of says:

“Jetstar customers are advised to purchase the airline’s travel insurance only to discover that, in many instances, they won’t be covered for cancellations and delays. This needs to be clarified to consumers upfront. Passengers are entitled to full disclosure and understanding of their entitlements.”

Rise in travel insurance claims 

Ball says that the insurance industry has felt the ramifications of worsening cancellation and delay rates.

“Our partner insurers have reported a rise in claims relating to cancellations this year with countless travellers affected. While travel insurance is crucial, it’s important to remember that most insurers will not provide cover for flight delays and cancellations if the airline is at fault.”

“Travel insurance will cover passengers affected by factors outside of the airline’s control, such as bad weather and natural disasters,” adds Ball. “However, staffing and system outages should be compensated for by the airline. Ultimately, it is the airlines' responsibility to provide you with the service that you have paid for.”

Calls for aviation reform

News of Jetstar’s poor service comes amid calls for reform across an industry notoriously lacking in terms of compensation for missed flights and cancellations.

Presently, Jetstar passengers delayed by three hours or more are entitled to a meal voucher, with up to $150 for overnight accommodation and flight transfers in some circumstances. The airline is not obligated to refund or compensate its customers within a specific timeframe.
By contrast, passengers in the EU are entitled to up to 600 Euros when delayed for more than three hours. And those eligible for refunds must be compensated within 7 days of a flight cancellation.

According to the ACCC, Australian airlines, including Jetstar, don't have to guarantee flight times and consumers should not assume that a plane will meet its exact advertised schedule. However, if the airline is at fault for a delay or cancellation, they are obliged to compensate their passengers.

“It’s unreasonable for airlines to knowingly palm their customers off to their travel insurer when they are responsible for the delay.” says Ball. “Airlines need to step up to the plate and look after their customers who have paid them for a service.”

How to seek compensation with Jetstar

Ball says that affected travellers should speak to their airline before making a claim with their travel insurer.
“All flights come with automatic consumer guarantees, no matter how cheap the fare is. If your flight has been delayed or cancelled outside a reasonable timeframe, and the airline is at fault, you are within your rights to seek a refund, credit, and/or cover for all reasonable expenses.”
When pursuing a refund Ball recommends getting everything down on paper and knowing your entitlements.

“Ensure you understand the reason for your flight disruption, take notes of any conversations and save all your email correspondence. Failing that, you can submit a claim with your travel insurer for consideration. You can also consider contacting the ACCC (Australian Competition and Consumer Commission).”

Contributor Natalie Smith

Natalie Smith

Having travelled to over 40 countries, studied tourism management and worked as a flight attendant for over three years, Natalie knows more than a thing or two about travel! She’s an adventure-lover, whose favourite trips have been trekking Machu Picchu and volunteering in an animal shelter in the Amazon. Qualified in Tier 2 General Insurance General Advice and specialising in travel insurance for the last five years, she in passionate about helping travellers get the most out of their holiday.

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