How to make the most of Qantas’ new points overhaul

Regular readers of this column will know my penchant – nay, passion – for Qantas frequent flyer points. Indeed, in just a few weeks I will take my two children to North America … for just $779 for the three of us in taxes.

Then, in June, I’ll fly to the UK and back for $894 (that’s Heathrow taxes for you). But for bookings from August it will all be different, as last week Qantas announced a devaluing of points redemptions.

Qantas is increasing the number of points needed to secure Classic Rewards flights.Credit: Steven Siewert

All my coming flights were booked with Classic Rewards, the most generous but also the scarcest type (seats are opened up in tranches now but best secured on their initial release date, 353 days in advance).

So it’s great news there are to be 1 million extra Classic Rewards seats – 20 per cent more – unlocked across the international network. And you’ll – happily – earn more points when you pay for flights (we are told up to 25 per cent) on domestic routes.

But with the points cost rising when you redeem them for flights, how do you get the best value now?

Well, my North America economy return – from Brisbane – required 41,900 points a leg each, so it was a total of 251,400 points. (Incidentally, I made these points in a bulk points-earning blitz, too … and you can do the same with the bonus points on offer today from various new credit cards, electricity providers, Qantas Health Insurance and gift card purchases via Everyday Rewards for future groceries.)

It looks like using points for international travel on actual Qantas flights may come out on top of the redemption ranking tables.

Unfortunately, it’s not been disclosed how many points this will take for bookings from August, but we have clues as to the changes with my economy London flights, which also from Brisbane were 66,200 points each way.

We’ve been told that Sydney to London, economy, will go from 55,200 points to 63,500 points. That’s a 15 per cent increase. Relevant to my excess points ‘cost’, the flights are on partner airlines. And we also know that Sydney to London on British Airways will go from 66,200 points to 76,100.

That’s 15 per cent again – in what could well be instructive for other points increases.

Now, the expansion of partner airlines might mean a higher points requirement, but it will also mean more routes.

Hawaiian Airlines is to be added, as well as four new partner airlines (Finnair, Air France, KLM and Iberia) offering Premium Economy, where the 1 million new international Classic Rewards will come from.

“The additional seats will help meet the growing demand for reward seats to Europe, Asia and North America during peak leisure periods,” says the Qantas announcement. Here are the other program nuances – and new winning member strategies – we understand so far:

• The 353-days-early release date seems to have been abandoned for 11 months. The Qantas statement says: “Members can book Classic Reward seats up to 11 months in advance, which means members who book before 5 August 2025 can lock in travel at the current points fare on flights until June 2026.” In any case, that means act now.
• Upgrades – historically the value winner – may no longer represent the best use of points. Qantas confirms it will “increase the number of points required for Classic Upgrades … on domestic and international flights”.
• Domestic travel – often poor points value – could soon be an even less attractive redemption option. Qantas says it will “increase the number of points required for … Classic Reward seats on domestic and international flights”; however, international usually already represents the far better deal.
• Though there may be more options, partner airlines will cost you more again. Qantas will “increase the number of points required for … partner airlines for bookings”.

In fact, overall for Classic Rewards, it looks like using points for international travel on actual Qantas flights may come out on top of the redemption ranking tables.

But you can still expect the points exchange rate both to fall and to remain hugely variable, depending on the route and prevailing price: until August it works out to a flight value of between 2 and 5 cents per point.

Alternatively, Classic Plus will remain a straight 1 point for every 1 cent cost of an economy fare, and for every 1.5 cent for a business one (which means it can be a good deal in sales on longer routes especially).

What we know for sure is that the removal – on the earning side – of the points cap for tiered members in premium cabins will mean ‘fancy’ flyers can do so just for taxes far more frequently.

Nicole Pedersen-McKinnon is author of How to Get Mortgage-Free Like Me, available at www.nicolessmartmoney.com. Follow Nicole on Facebook, X and Instagram.

• Advice given is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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