Qantas will give away 100,000 air tickets worth AU$20 million as its way of saying "sorry" to passengers it stranded by grounding its fleet last week.
Chief executive Alan Joyce says Qantas will also offer a bonus to all frequent flyers, although the airline has not yet finalised exact details.
The free flight bonanza brings the total cost of Qantas's grounding to $50 million, including about $30 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," Mr Joyce told News Ltd and Fairfax.
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.