Qantas frequent flyer points plummet in value since scheme started

SPECIAL INVESTIGATION: Qantas frequent flyer points are now so devalued that the same number of points that once would have flown you first class to London return will now get you a coffee maker or a one-way economy fare to Beirut.

Qantas frequent flyer points are now so devalued that the same number of points that once would have flown you first class to London return will now only get you a one-way economy fare to Beirut.

The frequent flyer program will now become part of the senate aviation inquiry that is looking into the blocking of flights by Qatar Airways that would have helped bring down sky-high airfares.

Opposition transport spokeswoman Bridget McKenzie said the flying kangaroo’s rewards point program had devalued dramatically since it began and needed to be examined.

“Qantas frequent flyer points have been debased progressively,’’ she said.

“They also have a significant role in people’s decisions to access airfares and the affordability of airfares. As chair of the committee looking at the affordability of our aviation sector I would welcome submissions on this issue for the committee to consider over coming weeks.”

The Qantas Loyalty program is run by Alan Joyce’s long term lieutenant Olivia Wirth who did not comment.

In 1996, a one way first class flight from Sydney to Los Angeles would cost 80,000 points. Today the same flight is 162,800 points plus charges. An economy fare costs 83,000 points plus $269 in fees and taxes. The same number of points will buy a Breville Kitchen Wizz food processor in the Qantas shop.

It is another blow for the airline that has seen chief executive Alan Joyce forced to bring forward his retirement after it was taken to court by the Australian Competition and Consumer Commission for misleading and deceptive conduct for selling almost 10,000 tickets to ghost flights that had already been cancelled.

The ACCC said Qantas was the nation’s most complained about company, with disgruntled frequent flyers making up some of the 2600 complaints it received about the airline last year.

Research shows Qantas frequent flyers lucky enough to find a rewards point seat are using up to five times as many points, plus cash, to redeem it than they would have in the early years of the scheme.

In 1996, a first class seat from Sydney to London return would cost 200,000 points.

Today, that same flight costs 433,800 points plus $1350 in taxes and carrier charges.

On the Qantas website, 200,000 points will buy you a $1200 De’Longhi Dinamica coffee maker or get you a one-way economy seat to Beirut if you chip in another $865 in taxes and charges.

In 1996, a first class seat from Sydney to London return would cost 200,000 points. Today that same flight would cost 433,800 points plus $1350 in taxes and carrier charges. On the Qantas website 200,000 points will buy you a $1200 De’Longhi Dinamica coffee maker or get you a one way economy seat to Beirut if you chip in another $865.

In 1996, a business class flight from Melbourne to Perth, Broome, Uluru, Alice Springs, Cairns and Brisbane, with stopovers, cost 37,500 points with no taxes. The same trip today would cost 197,900 points plus $300 in taxes and charges.

Frequent Flyer magazine editor Matt Graham said Aussies were too loyal to the flying kangaroo and urged them to collect points with other carriers.

“I have started collecting Virgin Velocity points and Singapore Airlines Kris Flyer points because they have more seats and are better value,” he said.

Qantas last changed the scheme in 2019, raising the number of points required for a flight by 15 per cent.

In 1996, flying to multiple cities around Australia in business class would cost just 37,500 points according to research done by Frequent Flyer magazine.

Today, that same trip would cost 197,900 points and $300 in taxes and charges — that is almost three times higher than the Australian Bureau of Statistics rate of inflation.

There are now almost 15 million Qantas rewards points holders compared to just 50,000 when the frequent flyer program began in 1986, and points experts say it is virtually impossible to snag a classic rewards points seat, partly because competition for them is so great.

In 1996, a business class flight from Melbourne to Perth, Broome, Uluru, Alice Springs, Cairns and Brisbane, with stopovers, cost 37,500 pointswith no taxes. The same trip today would cost 197,900 points plus $300 in taxes and charges.

Points expert Steve Hui, founder of iFLYflat, welcomed the call for the Qantas rewards scheme to be investigated because it was “duping” customers.

“Qantas is encouraging people to do stuff to get points with the promise that you can use them in the future to get a flight,” Mr Hui said.

“But in the last two years they are not offering many seats at all which means their promise is hollow.”

Mr Hui said he had been studying rewards points for his business for the past 11 years, and that since Covid, Qantas had changed the way it released classic reward point seats.

“They used to be released systematically so that you could find a rewards point seat to anywhere if you were prepared to be flexible,” he said.

“But now there is nothing for months and months and then it is the AGM and suddenly, bam, there are loads of seats which does not help passengers who are trying to plan their travel.”

Finder.com travel expert Angus Kidman said how you spent your points dictated their value. A point spent on a classic reward flight was worth up to 2.5 cents but a point spent on a toaster from the online shop was worth just 0.85 cents.

“The biggest problem for people today is finding a way to use their points in a way that is good for them,” he said.

“Since Covid, Qantas is just not releasing as many seats.”

The Qantas Loyalty program is run by Mr Joyce’s long term lieutenant Olivia Wirth who did not comment.

A Qantas spokesman denied claims that seats were not being released, and said a record 155 billion points had been used last year.

“One in every 11 passengers flew on a reward seat on Qantas flights last year,” he said.

“There are still over 5 million Classic Flight Reward Seats available for travel in the next 12 months across the entire Qantas network.

“As more of our airline partners return to pre-Covid capacity, frequent flyers can expect to see more reward seats become available.”

Originally published as Qantas frequent flyer points plummet in value since scheme started