What are Qantas’ Frequent Flyer changes?

This means that, unlike Classic Rewards seats, a Classic Plus seat will require more points during school holidays and other peak periods such as long weekends or during sporting events.

Why can’t I fly to Europe or the US using points alone?

Because it doesn’t make commercial sense.

Qantas’ operating margin on international flights (including its freight division) was 11.7 per cent in 2023, buoyed by limited capacity and record demand post-COVID-19, but this is traditionally the most difficult part of the business to make profitable due to its high costs.

The closest thing to a “free” flight with Qantas remains snagging one of 5 million Classic Rewards seats, which means you can fly from, say, Sydney to Los Angeles in business class for $400 and 108,400 points … if you can manage to beat other millions of members to it.

Qantas boss Vanessa Hudson is trying to address the brand failings of the business while ensuring investors are not spooked by any drastic changes to its projections. The loyalty division is targeting $1 billion in earnings by 2030, which means it needs to generate about 10 per cent growth every year until then.

Hudson said on Monday she believed the extra flexibility in the frequent flyer program would improve earnings. It’s too soon to weigh in on whether she’s right. The Classic Plus decision was aimed at “providing more access to more seats on more flights across more time periods” but that it was important to do so sustainably, she said.

Virgin Australia, Qantas’ major local competitor, also has a frequent flyer program called Velocity, which has two ways to redeem points for flights: Velocity Rewards and Any Seats.

The number of Velocity points required for flights tends to be less than Qantas on comparable legs, and they are redeemable on Virgin’s partner airlines such as Qatar Airways and Singapore Airlines. But being one of Velocity’s 11 million members is not going to get you a free flight to an international destination either.

Will Qantas add more Classic Rewards seats?

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The number of points required for each Classic Rewards seat has not been increased since 2019, and they book out almost instantly.

Qantas said on Monday that there were no changes to the Classic Rewards program coming any time soon. This means that although they’ve ruled out increasing the number of points required, there’s no imminent plan to make more Classic Rewards seats available.

“We are committed to Classic Rewards … we’re not changing that and if we were to change it, we will give customers lots of notice. It’s not a feature of what the plan is today,” Hudson said.

There were 30 per cent more classic redemption bookings last year than in 2019, the loyalty program’s executive manager Sarah Udy said.

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