The national airline’s Qantas epiQure website invited customers to “celebrate Anzac Day” with discounted wine, champagne and bonus frequent flyer points.
Frequent flyers have taken to Twitter this morning, calling the airline inappropriate, tacky and offensive.
A Qantas spokeswoman said the airline had apologised for any offence.
"The epiQure campaign has been withdrawn effective immediately," she said.
Under federal legislation introduced almost a century ago, the use of the word Anzac in relation to businesses or professions is banned.
Permission can be sought from the Minister for Veterans' Affairs, whose department spokesman said that the "use of the word Anzac in Anzac Day is allowable as it relates to 25 April".
Further comment has been sought.
The promotion follows the controversial campaign by Melbourne-based Real Cosmetic and Plastic Surgery, which offered Facebook users the chance to win consultations with plastic surgeon Stephen Salemo as part of its “MCG Anzac Day Mateship Experience”.
All social media references to the promotion, which asked women to rate their breasts, have since been removed and the surgery has apologised.
The Minister for Veterans' Affairs condemned the promotion on Tuesday, calling for the website to be removed.
