Qantas Expands Rewards, Costs $120M
Qantas expands Frequent Flyer rewards with 20 million new seats, costing $120M in 2025, amidst a major overhaul after a reputational crisis. EBIT for 2024 slightly down.
April 8, 2024
Qantas Frequent Flyer Program Expansion
The Qantas Frequent Flyer program is set to undergo its largest expansion to date, introducing an additional 20 million new rewards seats, increasing from the previously available 5 million seats. This change follows what has been the most significant reputational crisis in the program's history.
Financial Impact
The expansion comes with a substantial financial commitment, costing Qantas a total of $120 million in the 2025 financial year. This amount primarily represents potential lost ticket revenue due to the increased availability of reward seats.
Earnings and Guidance
The Qantas Loyalty division's Earnings Before Interest and Taxes (EBIT) guidance for the 2024 financial year shows a slight decline, with forecasts adjusted from between $500 million and $550 million to between $500 million and $525 million.
Despite these adjustments, Qantas Loyalty's underlying earnings are projected to grow by 10% in the 2025 financial year, a marked decrease from the 56% growth experienced in the 2023 financial year.
