Qantas Revamps Loyalty Program: More Points Earned, Higher Redemption Costs, and Millions of Reward Seats
January 22, 2025Qantas has announced significant changes to its loyalty program, which will enhance the points earned on flights but also increase the points required for redemptions and upgrades starting in August 2025.
Despite these adjustments, Qantas aims to maintain the availability of over 20 million reward seats, ensuring that loyal customers can still benefit from the program.
Following the announcement, Qantas' share price saw a positive market reaction, rising nearly 3.4%, according to market strategist Jessica Amir.
Amir noted that the busy travel season, particularly due to Lunar New Year flights to and from China, is expected to enhance customer credibility for the airline.
Qantas loyalty head Andrew Glance emphasized the growth of the Frequent Flyer program over the past 40 years, focusing on rewarding loyal customers and improving booking accessibility for Classic Reward seats.
Members will gain access to up to one million additional Classic Reward seats on partner airlines, including Finnair, Air France, KLM, and Iberia.
Jetstar, Qantas' low-cost airline, will also participate by offering Classic Reward seats on nearly half its flights, starting at 5,700 points plus additional fees.
These changes come as Qantas seeks to restore trust with consumers following dissatisfaction over service quality and point redemption difficulties experienced during the pandemic.
Effective July 2025, frequent flyers will earn up to 25% more points on domestic flights, translating to nearly 4 billion additional points annually.
The adjustments to the loyalty program are seen as essential for long-term investment and improving seat availability for members, according to Glance.
The new loyalty program changes will be implemented over the next 12 months, with specific increases in points for Classic Reward business and economy class seats.
These announcements followed a recent 72-hour sale on 100 routes across Australia, where fares started as low as $109 or 6,400 points plus taxes.
Summary based on 2 sources
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Sources
The Sydney Morning Herald • Jan 22, 2025
Qantas announces frequent flyer shake-upThe West Australian • Jan 22, 2025
The big changes coming to Qantas’ frequent flyer program