Pandemic travel credits worth millions about to disappear for thousands of Aussies

Virgin Australia has given travellers until the end of this month to claim COVID-era flight credits. (ABC News: Billy Cooper)

Virgin Australia says customers with remaining COVID-era credits must book and complete their travel by June 30 or lose their money.

Consumer advocates and some politicians are calling on the airline to extend the deadline or refund unused credits.

Virgin Australia has been criticised for pocketing $93 million in COVID-era flight credits, which are due to expire within weeks.

Travellers received the credits after bookings between April 2020 and July 2022 were cancelled due to pandemic restrictions, with airlines issuing vouchers or credits in place of refunds.

Virgin said those who still hold an unused credit must book and complete their travel by June 30, or risk losing the remaining value.

Senator Bridget McKenzie says the money belongs to Australians and it was unacceptable for the company to keep it. (ABC News: Philippe Perez)

Senator Bridget McKenzie has called on the airline to extend the expiry date or refund the money, saying it represents "real cash" paid by customers and should not be retained by the airline.

"COVID travel credits are not loyalty points, they are customer money," Senator McKenzie said.

Virgin Australia says the majority of COVID credits have already been redeemed. (ABC News: Billy Cooper)

She said many households were struggling with cost-of-living pressure and may not have been able to use the credits, and that the airline should follow the lead of other carriers that extended the vouchers or refunded customers.

Both Qantas and Jetstar's credit systems do not have an expiry date.

Qantas agrees to settle a class action ​related to flight credits issued during the COVID-19 ‌pandemic.

In a statement, Virgin Australia said the majority of COVID credits had already been redeemed, and that customers were repeatedly notified about expiry dates over several years.

"Despite extensive efforts and regular reminders to our customers, the remaining credit balances are seeing almost no usage," a Virgin Australia spokeswoman said.

She said more than 90 per cent of credits had already been redeemed.

Rockhampton resident Peter Kernke said he only discovered his family still had a $412 Virgin credit after receiving what he initially thought was a scam email warning it was about to expire.

The credit related to a flight cancelled during the pandemic while his wife was travelling between Rockhampton and Sydney to visit her dying mother.

Mr Kernke said it took more than an hour on the phone with Virgin Aus