Andrew Wilkie takes aim at Qantas frequent flyer fees

One independent MP has taken aim at carrier Qantas, calling the airline “greedy” for its reward program pricing practices – with the MP lodging a complaint with the ACCC.

ADELAIDE, AUSTRALIA - NCA NewsWire Photos - MAY 01 2024: ADELAIDE AIRPORT PLANE GENERICS. Picture: NCA NewsWire / Ben Clark

Independent Clark MP Andrew Wilkie has taken aim at the nation’s flag carrier Qantas, calling the airline “greedy” for its reward program pricing practices – with the MP lodging a complaint with Australia’s Competition and Consumer Commission.

In his letter, Mr Wilkie urged the ACCC to investigate the airline’s practice of carrier charges on flights booked with frequent flyer rewards points.

“I am concerned that Qantas carrier charges, which are applied to flights booked using Frequent Flyer points, are in reality an underhand means for the airline to actually charge for flights despite the customer’s understanding that such flights are paid for with points,” Mr Wilkie said.

“I urge the Australian Competition and Consumer Commission to investigate Qantas carrier charges, with the view to banning the de facto ticket charge practise or at least ensuring they are published and readily available to customers prior to booking flights.”

Independent Member for Clark Andrew Wilkie during Question Time in the House of Representatives at Parliament House in Canberra, Wednesday, March 27, 2024. (AAP Image/Mick Tsikas)

Mr Wilkie criticised the airline carrier and said customers were often left in the dark when it came to price breakdowns.

“I understand that all flights attract airport taxes, fees, and charges which are outside of Qantas’s control, and they are clearly displayed in the fare breakdown. However, the carrier charges which are added to Frequent Flyer fares are not itemised or explained and they vary considerably with the route, class of travel and airport of origin,” he said.

“Customers can only find out how much they will be when making a booking as they are not listed anywhere. I would not be surprised if many loyal Qantas customers do not realise they are being charged by the airline for using their well-earned loyalty points.

Mr Wilkie said he was concerned Tasmanians would be impacted the most by the charges.

“People understand that airlines pass on costs outside their control, like government taxes and airport charges. But customers don’t accept airlines pocketing cash on the side when those customers assume they’re simply using points to obtain frequent flyer tickets,” Mr Wilkie said.

“This matter is particularly problematic for Tasmania, seeing as most people travel in and out of the state by air. It’s an impediment to Tasmanians connecting with the mainland and to inbound tourists hoping to come down and visit. The only winner is the airlines, who are doing very nicely these days while their customers struggle with the soaring cost of living.”

Qantas said all airlines, including the major Australian carriers, have charges associated with booking frequent flyer reward seats.

“Airlines around the world have a points and cash component when customers book frequent flyer seats,” the Qantas spokesman said.

A Qantas spokesman said the taxes and fees are third-party costs imposed on all airlines and include airport and landing costs.

“Carrier charges ensure airlines can keep the points required to book these seats as low as possible,” the spokesman said.