Qantas will give away 100,000 air tickets worth $A20 million ($NZ26 million) as its way of saying "sorry" to passengers stranded by the grounding of its fleet last week.
Eligible customers who bought their tickets in Australia will be offered a free return economy flight on any domestic or trans-Tasman route.
Qantas says further announcements will be made shortly regarding overseas-based customers and its frequent flyer program.
The free flight bonanza brings the total cost of the airline's grounding to $A50 million, including about $A30 million for the two days that flights were cancelled.
"We know that we have disrupted a huge amount of customers and we are wanting to go above and beyond to say we are sorry," Qantas chief executive Alan Joyce said in a statement on Sunday.
Mr Joyce announced last Saturday he was locking out workers involved in long-running industrial action and grounding the entire global Qantas fleet as a consequence of the lock-out.
At this stage, customers who bought their tickets in Australia for travel between 5pm on Saturday, October 29, and midnight on Monday, October 30, and whose flights were disrupted, will be eligible for a free return economy flight on any domestic or trans-Tasman route.
The passengers will also be refunded the full cost of their Qantas ticket and any expenses they incurred while stranded away from home.
Passengers who bought tickets on other airlines to make up for the missed flights will also be reimbursed for the difference between the new flight and their original Qantas flight.
NZN