What it means
An ex gratia payment is made as a goodwill gesture rather than because the law requires it. The payer expressly does not admit fault or liability by making it. In Australia, businesses, insurers and government bodies sometimes make ex gratia payments to resolve a complaint or hardship without conceding they did anything wrong. Because no liability is admitted, an ex gratia payment generally cannot be treated as proof of legal responsibility.
How it's used
The airline offered an ex gratia payment of $500 as a goodwill gesture, while denying it was legally at fault for the delay.