Travel giant Webjet has been fined $9 million after it admitted it failed to include compulsory fees in some of its advertised airfare costs, and it provided misleading booking confirmations.

In the Federal Court case, brought on by the Australian Competition and Consumer Commission (ACCC), Webjet admitted it made misleading statements in promotional emails and social media posts on airfare prices between 2018 and 2023.



Webjet further admitted it provided false or misleading booking confirmations to 118 customers for flights it had not actually confirmed between 2019 and 2024, then asked for payments of up to $2,120 from consumers to complete the booking.

Webjet has since refunded those customers.

'From $18' airfare triples in cost​

The consumer watchdog began investigating Webjet after a customer complained that an airfare advertised as "from $18" ended up costing triple that amount once all the 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," ACCC chair Gina Cass-Gottlieb said.

"Seeking to lure in customers with prices that don't tell the whole story is a serious breach of the Australian Consumer Law."

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Compulsory fees, including "Webjet servicing fee" and "booking price guarantee" fee, ranged from $34.90 to $54.90 a booking, depending on the destination.



While fees were disclosed on the website, app and most emails, Webjet's social media posts did not disclose the additional fees.

"Retailers must ensure their advertised prices are accurate. They should clearly disclose additional fees and charges," Ms Cass-Gottlieb said.

Webjet's fees made up 36 per cent of its total revenue between November 1, 2018 and November 13, 2023.

Webjet cooperated with the ACCC, admitted liability and agreed to make joint submissions to the court about orders, including the penalty.

Webjet improving fee disclosures​

A statement published to the ASX by Webjet Group on Monday acknowledged the agreed penalties:

In accordance with the Federal Court's orders, and consistent with the agreement reached between the parties, Webjet Marketing has agreed to:

• Pay a total penalty of $9 million.
• Publish a corrective notice in a form agreed with the ACCC for a period of 60 days.
• Review, maintain and continue to implement an Australian Consumer Law compliance program in an agreed form.
• Pay a $100,000 contribution to the ACCC's costs.

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In a February ASX statement, Webjet said it had "voluntarily and proactively implemented improvements to its fee disclosures".

"Webjet Group is confident that any customer concern with its offering, disclosure, service, or pricing was limited," it said.

"It has always prided itself on its high levels of trust with all customers and stakeholders and has fully cooperated and positively engaged with the ACCC to resolve this matter."

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Written by Liana Walker, ABC News.