Qantas Airways
Qantas error fare: About 300 customers made bookings during the eight hours the mistakenly reduced flights were on offer. Image Credit: Shutterstock

Sydney: Qantas Airways Ltd. accidentally sold return first-class seats between the US and Australia for less than A$5,000 ($3,390) - a discount of as much as 85 per cent on the usual premium cabin fare.

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Passengers snapped up 300 of the tickets within eight hours on Aug. 22, Qantas said on Monday. The airline said it's rebooking the lucky customers into business class "- still a saving of about 65 per cent on the normal fare. Qantas currently offers first-class return flights between Sydney and Los Angeles in October for between A$20,000 and A$29,000.

Airlines typically don't have to honor advertised fares when they're clearly incorrectly priced. Qantas is opting to soak up costs from the snafu, blamed on a coding error, as it rebuilds its battered reputation. The Qantas brand has been bruised in recent years by cancellations, lost luggage and ticket sales on already-scrapped flights.

"This is a case where the fare was actually too good to be true," Qantas said in a statement. The rebookings were "a gesture of goodwill." Customers also have the option of a full refund.

Qantas earlier this year agreed to pay a A$100 million penalty and compensate passengers for selling tickets on thousands of flights it had already decided to cancel.