Qantas Revamps Loyalty Program
Qantas Frequent Flyer launches Classic+, adding 20 million new reward seats, with an anticipated lower redemption cost. UBS sees minimal financial impact.
April 13, 2024
Simon Rowles
Founder, CEO
Major Revamp for Qantas Frequent Flyer Program
The Qantas Frequent Flyer program has undergone its most significant change in 35 years with the introduction of Classic+. This update promises an addition of 20 million new rewards seats, costing the airline approximately Au$120 million.
Financial Impact and Industry Opinions
Citi analysts project that only about 10% to 20% of these new rewards seats will be redeemed, suggesting a reduced expenditure for Qantas, possibly around $70 million. On the other hand, UBS analysts assess that the impact of Classic+ on Qantas’ earnings and cash flow will be negligible.
