Qantas unveils biggest changes to Frequent Flyer program in 32 years

Want to use your frequent flyer points for a premium seat? It will now cost you more.

Qantas Loyalty chief executive Olivia Wirth, left, has announced big changes to the airline’s Frequent Flyer program.

Qantas will make it easier for frequent flyers to use their points to buy economy seats but premium seats will cost more under a major overhaul of the airline’s loyalty program.

Under the changes that Qantas has billed as the most significant in the program’s 32-year history, more than 1 million extra seats will be made available for frequent flyers and costs associated with redemption flights will be reduced.

Up to 10 per cent fewer points will be needed for an international economy “classic reward” seat, but premium seats will cost up to 15 per cent more in points.

Upgrades will also require up to 9 per cent more points.

As an example, an economy seat from Melbourne to Los Angeles that currently requires 90,000 points and costs $513 in fees, will now cost 83,800 points plus $393 in fees.

Points needed for a premium economy seat on the same flight will increase from 144,000 to 162,600, but fees will fall from $793 to $603.

Frequent flyers seeking a business class seat on Melbourne to LA will need 216,800 points instead of 192,000 and $703 in fees, down from $943.

First Class redemption seats will cost 325,600 points up from 288,000 with associated fees the same as a Business Class redemption seat.

Qantas Group CEO Alan Joyce said the changes represented a $25 million investment and were about strengthening the program to keep delivering for its almost 13 million members.

“The Qantas Frequent Flyer program has always been about rewarding customers for their loyalty. These changes are about making it easier for members to access these rewards and help to keep them highly engaged, which in turn is good news for our business as a whole,” Mr Joyce said.

“We know the majority of our members want to use their points to take a dream trip overseas, so we are adding more Reward seats including First, Business, and Premium Economy to places like London, LA, Tokyo and Singapore, as well as slashing carrier costs.”

Qantas to revamp frequent flyer program.

CEO Alan Joyce: Today we have an amazing, big program. We have 12.7 million members. The frequent flyer points, all of those 12.7 members, have travelled one trillion km since the program has begun.

MORE: https://t.co/2uPGnIFKwf pic.twitter.com/zA9X2w3sgA

— Sky News Australia (@SkyNewsAust) June 20, 2019

He said the increase in points needed for premium seats was the first increase in 15-years.

“The product has improved a lot in that time,” Mr Joyce said.

A new “Points Club” to be launched late this year is aimed at frequent flyer members who earn most of their points on the ground, rather than from booking flights.

To be eligible, members will need to earn 150,000 points through things like Qantas-linked credit card use, shopping at Qantas-partnered retailers and buying Qantas branded products such as insurance and wine.

Those who do make qualify for the club will then be able to access benefits normally reserved for those who accumulate status points from flying, such as lounge access and “member exclusive” offers.

Qantas will also create a “lifetime platinum” status for people who accumulate 75,000 status credits — equivalent to two decades of flying at platinum level.

Qantas Loyalty chief executive Olivia Wirth said the super status was designed to reward those members who had gone as high as they could go in the program.

“Lifetime platinum will be a very exclusive club. In some ways it will be more exclusive than the Chairman’s Lounge,” Ms Wirth said.

“This will give those people a lifetime of platinum rewards which will be incredibly rewarding for those members.”

The points changes and extra seats will take effect from today with other changes to be introduced in the next year.

Qantas Frequent Flyers has close to 13 million members who can earn and use points through 300 partner organisations.

Up to 10 per cent fewer points will be needed for an international economy “classic reward” seat, but premium seats will cost up to 15 per cent more in points.