Qantas has unveiled a suite of changes to its loyalty program, delivering a mixed bag for frequent flyers that will increase points earned on flights, while raising the points needed for seat redemptions and upgrades.
On Wednesday, Australia’s largest airline announced frequent flyers would have access to more premium cabin reward seats and the ability to earn more points when flying.
Qantas has announced a number of changes to its Frequent Flyer loyalty program.
Members will also have the opportunity to redeem points on seats with Hawaiian Airlines and unlock classic reward seats with partner airlines such as Finnair and Air France.
From July, members flying domestically will earn up to 25 per cent more points on Qantas flights. However, come August, Qantas will increase the number of points needed for classic upgrades and classic rewards seats. The cost of carrier charges will also be raised from August.
According to comparison site Finder, the points required for a classic reward return trip from Sydney to London will jump from 110,400 to 127,000 – a 15 per cent increase.
Qantas said this was the first classic reward seat pricing increase since 2019.
“A lot has changed in the last six years,” Qantas loyalty chief executive officer Andrew Glance said.
“These adjustments will ensure we can continue to invest in enhancing the program for the long term and continue to grow the levels of classic and classic plus reward seat availability for members year on year.”
Qantas’ share price jumped almost 3.4 per cent after the announcement, as of 3.40pm on Wednesday.
Moomoo market strategist Jessica Amir said the latest Frequent Flyer update was “one of the key drivers” behind Qantas’ gains on the ASX.
Amir added that this time of year was busy for Qantas due to flights to and from China for Lunar New Year, and she believed the airline had regained credibility with customers recently.
The latest revamp to Qantas’ Frequent Flyer program comes as the airline battles to restore credibility and trust with consumers after a challenging period post-pandemic.
Traveller discontent reached a climax in 2023 after Qantas revealed record profits amid a furore over slipping standards and poor service. Part of customers’ frustration was centred on the Frequent Flyer program and subsequent difficulty redeeming points since operations resumed after COVID-19.
In April last year, Qantas boss Vanessa Hudson announced customers travellers would be able to use the new Classic Plus Reward program on international flights, and it would vary as with normal airfares. This change meant passengers would require more points during peak travel periods and fewer during non-peak times.
Glance said the Frequent Flyer program had grown significantly over the past four decades and remained focused on innovating the program to reward loyal members.
“Travel remains the No.1 priority for our members in how they earn and redeem their points, with 13,000 classic reward seats booked every day, including 1000 Classic seats in premium cabins to international destinations,” he said.
“These changes are designed to further enhance the ways our members can book classic reward seats and the destinations and cabins they can access when they fly.”
Qantas said the new loyalty program changes would be rolled out over the next 12 months.
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