Qantas has made significant changes to its Frequent Flyer program, offering both advantages and disadvantages for members. While domestic flight earnings will increase by up to 25%, redemption costs for classic rewards and upgrades will rise. The airline is also expanding partner airline options and premium cabin seat availability. This revamp comes amidst Qantas' efforts to rebuild customer trust and address concerns raised post-pandemic.
Qantas has announced significant changes to its Frequent Flyer program, aiming to balance increased point earnings with adjustments to redemption values and upgrade costs . The airline revealed plans to expand premium cabin reward seat availability and enhance point-earning opportunities for members. Domestic flight passengers will see their point accrual increase by up to 25% starting in July.
Additionally, Qantas is introducing the ability to redeem points on seats with Hawaiian Airlines and unlock classic reward seats with partner airlines like Finnair and Air France. However, these benefits come with some trade-offs. Starting in August, Qantas will raise the points required for classic upgrades and classic reward seats. Carrier charges will also experience an increase. According to comparison website Finder, the points needed for a classic reward return trip from Sydney to London will jump from 110,400 to 127,000, representing a 15% increase. Qantas Loyalty CEO Andrew Glance explained these changes are necessary to ensure the program's long-term sustainability and continued growth of reward seat availability for members. He noted that the program has evolved considerably over the past four decades and remains committed to innovation to reward loyal customers. \The recent Frequent Flyer update follows Qantas' efforts to regain customer trust and credibility after facing criticism for service quality and operational challenges in the post-pandemic era. In 2023, the airline's record profits were overshadowed by public concerns regarding declining standards. Part of the customer frustration stemmed from the Frequent Flyer program and the difficulty in redeeming points after flight operations resumed. In April 2022, Qantas CEO Vanessa Hudson announced the introduction of a new Classic Plus Reward program for international flights, with point requirements varying based on peak and non-peak travel seasons. This change aimed to address the issue of fluctuating demand and ensure a more equitable distribution of reward seats. \The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Qantas emphasizes that travel remains the top priority for its members, with 13,000 classic reward seats booked daily, including 1,000 Classic seats in premium cabins for international destinations. These changes, according to Qantas, are designed to further enhance the booking experience for classic reward seats and expand the range of destinations and cabin options available to members. Moomoo market strategist Jessica Amir believes this update is a key factor contributing to Qantas' recent positive performance on the Australian Securities Exchange (ASX). She also points to the surge in travel demand during the Lunar New Year season, which further boosts Qantas' revenue during this period.
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