Qantas Airways is set to revamp its Frequent Flyer program significantly, marking the first increase in points required for redeeming Classic Rewards seats since 2019. The changes, slated to take effect from August this year, will see members needing thousands more points to claim flights both domestically and internationally. For example, redemptions from Sydney to London will increase from 55,200 points plus $263 to 63,500 points plus $263.
According to Andrew Glance, the Chief Executive of Qantas Loyalty, the adjustments aim to secure the long-term sustainability of the program. Glance stated, "A lot has changed in the last six years. These adjustments will allow us to continue investing in enhancing the program for the long term and grow the levels of Classic and Classic Plus Reward seat availability for members year on year." This change will mark the second increase of its kind since 2004, highlighting the shifting dynamics of airline loyalty programs.
Some analysts and experts are expressing skepticism about these new policies. Steve Hui, CEO of iFlyFlat, warned this overhaul could be dangerous for Qantas, as the airline's Frequent Flyers will have to spend significantly more points to access favorite routes. "Did Qantas just give its Frequent Flyers the middle finger?" Hui questioned, noting the additional Classic Reward seats offered with partner airlines may not be exclusive to Qantas members.
From August, the cost to redeem Classic Rewards will be higher across the full network, which raises questions about the value of loyalty for frequent travelers. Members will also notice increased fees on certain routes. Specifically, one-way business seats from Sydney to London will cost 21,700 additional points and incur $175 more in fees.
Despite these drawbacks, Qantas will introduce several lucrative features to the program as part of the overhaul. For starters, frequent flyers will earn up to 25% more points on domestic flights, with several routes ramping up. A flight from Sydney to Perth, for example, will earn 1,815 points, up from 1,450. The maximum earning cap for tiered members flying premium cabins will also be removed, facilitating quicker rewards accumulation for frequent travelers.
Introducing the lowest economy reward seats starting at 5,700 points on Jetstar short-haul flights aims to provide additional appeal to frequent flyers. The changes will allow Qantas members to book Classic Reward seats for as low as 6,200 points across over 100 routes, enhancing the chances of utilizing points more effectively.
Airline partnerships will see significant expansion, unlocking access to up to one million additional international Classic Reward seats on carriers like Finnair, Air France, KLM, and Iberia. Alongside this, more seats will be available for booking on Hawaiian Airlines, allowing access to popular international destinations and boosting availability during peak travel periods.
Members should be prepared to adapt to the new points system, as changes will roll out gradually over the next 12 months. This includes adjustments such as raising the points required for Classic Upgrades and Classic Reward seats booked through partner airlines. Qantas' loyalty program has seen incredible growth over the past 40 years, securing $511 million during the 2024 financial year alone. The airline is betting heavily on this overhaul to maintain and expand its knack for future investments.
Despite rising prices, Qantas executives, including Glance, express confidence these adjustments will benefit members in the long run. "We’re also introducing the lowest reward seat fare in Australia, with Jetstar short-haul routes for 5,700 points on all available paths, helping members get away faster," Glance said. Members who book before the hike could still take advantage of existing points requirements until June 2026.
While many frequent flyers may feel the sting of these changes, the hope is to bolster long-term program value and sustain competitive advantages amid rising costs across the industry. With travel prices on the rise and competition stronger than ever, Qantas hopes to secure its place as the leading airline partner for its frequent flyer members.