Australian airline wins 'Shonky' award for pocketing $75m in customer cash

Virgin Australia has won the dubious honour of a 2026 CHOICE Shonky Award, with the consumer advocacy group slamming the airline for pocketing tens of millions of dollars in cancelled flight credits from the COVID-19 pandemic.

"At a time when most consumers are doing it tough, you'd think that companies might give us all a break," said CHOICE chief executive Monique Perry.

"Unfortunately, consumers continue to be treated badly by businesses across Australia, so there was no shortage of contenders for this year's Shonky Awards."

The annual awards, which highlight dodgy retail practices and faulty products, used the 2026 list to take aim at a washer-dryer that takes 25 hours to complete its eco cycle, and Quest's pricey bag of "protein" chips.

The list also mentions Ticketek and Ticketmaster for the use of dynamic pricing to drive up event ticket costs, and Sony, whose customers are at risk of losing their online purchases without refunds.

Virgin Australia received its Shonky Award after announcing customers had just months to spend flight credits accrued during travel bans in the COVID-19 pandemic.

Travellers handed credits for cancelled flights between April 2020 and July 2022 were told they needed to book and use their credits by June 30, or they would expire.

Virgin had been holding about $93 million in flight credits, a parliamentary inquiry was told in June 2026.

After pressure from consumer groups and politicians, the airline extended the flight deadline to May 2027, but tickets had to be booked by June 30.

This meant Virgin kept $75 million in customer cash, according to CHOICE.

The airline had not only failed to provide a service to customers, but had taken their cash instead of offering refunds, Perry said.

"Virgin Australia is certainly deserving of the Shonky Award it is receiving this year," Perry said.

A spokesperson for Virgin Australia told The Senior that more than 93 per cent of the company's COVID-era credits were redeemed before the expiry date.

"Following a number of extensions between 2023 and 2025, we regularly communicated the expiry date and later extended the fly-by date to 27 May 2027, giving guests almost another year to travel," the spokesperson said.

Other award winners include home appliance manufacturer Hisense, for its "super energy-efficient" washer-dryer combination which takes an infuriating 25 hours to complete a cycle.

Perry said the machine was able to qualify for an eight-star energy rating for its dryer, and five-star rating for its wash cycle, without declaring that these cycles used together would take 25 hours to complete.

"Manufacturers get to nominate their own [eco] program, and it's usually one that produces the best energy-efficiency outcome, rather than one households would actually use," Perry said.

A spoksperson for Hisense said the company recognises that households have "diverse needs" when it comes to their appliances.

"We understand that some customers prioritise energy efficiency and lower running costs, choosing to run cycles overnight taking advantage of off-peak discounted electricity prices, while others may place greater importance on factors such as speed and capacity," the spokesperson said.

Sony also received a Shonky Award for its use of digital-only downloads which can be deleted by the company at any time without issuing refunds.

"You're only buying a licence to access the content via Sony's digital storefronts - a licence which can be ended at any time, without a refund," Perry said.

This issue was recently highlighted when Sony ended a licensing agreement with Studio Canal in Britain and Europe, and hundreds of customers permanently lost access to 500 films they had paid for.

Ticketek and Ticketmaster also received a gong for using "dynamic pricing" for popular concert tickets.

The tactic, which surges the cost of in-demand tickets, recently saw John Farnham fans hoping to attend his tribute concert in facing inflated prices of up to $1650, according to CHOICE.

A spokesperson for Ticketek told The Senior the $1650 tickets were not subject to dynamic pricing, but were the set price of the show's premium ticketing offering. Only 3.7 per cent of ticket categories for were subject to price increases, they said.

Petcover pet insurance was also handed a Shonky, for updating its policies every year to classify any conditions the pet experienced as "pre-existing". This means recurring conditions are excluded from cover.

"This is a policy that reduces cover every time you make a claim," Perry said.

CHOICE handed the entire pet insurance industry a Shonky award in 2019, saying a review of 86 policies found owners were often told their pets could not be insured for numerous illnesses, and using broad definitions of pre-existing conditions which made it near impossible to change providers.

Snack nutrition company Quest's voyage into the bagged chip market may be delivering its consumers more than 20 of protein a bag, but at what cost?

The chips, which are sold in 32-gram bags, are 886 per cent more expensive by weight than their competitors, according to CHOICE.

"You get more protein, but there are much cheaper (and simpler) ways to fuel your gains," Perry said.

Petcover, Sony, and Quest were approached for comment.