SYDNEY- Qantas Frequent Flyers are set to enjoy expanded access to more than 20 million additional reward seats by introducing Classic Plus Flight Rewards. This innovative offering provides members a fresh opportunity to utilize their Qantas Points for flight bookings.
This significant enhancement marks one of the largest expansions ever witnessed in the 35-year history of the Qantas (QF) Frequent Flyer program. By leveraging Qantas Points, it simplifies travel arrangements to popular destinations such as London, Tokyo, New York, and Singapore, even during peak periods.
Qantas Frequent Flyer Program Changes
While Classic Plus rewards typically require more points than the existing Classic reward seats, they offer exceptional value within the frequent flyer program due to their significantly broader availability. Furthermore, Classic Plus reward seats are eligible for upgrades.
The points required for booking Classic Plus reward seats will fluctuate like standard airfares. This means they may be lower during off-peak periods or with early bookings and higher during peak times. Classic Plus reward seats might surpass Classic reward seats on the same route during sales and promotional events.
Effective immediately, Classic Plus reward seats can be reserved for Qantas international flights departing from Australia for travel commencing July 1, 2024, exclusively through qantas.com. By year-end, This initiative will extend across the airline’s entire international and domestic network on Qantas-operated flights.
By the culmination of 2024, with the full implementation of Classic Plus across the international and domestic network, members will have gained access to 20 million new reward seats within the rolling 12-month booking window. This elevated availability will be sustained on an ongoing basis.
CEO Remarks
According to Qantas Group CEO Vanessa Hudson, frequent flyers now have more diverse avenues for accruing points, and introducing a new flight reward option will unlock additional value for those looking to utilize their burgeoning points balances for travel.
Ms. Hudson emphasized the integral role of the Qantas Frequent Flyer program within the airline, highlighting its longstanding commitment to acknowledging customer loyalty. She underscored the significance of customer feedback in shaping program enhancements, stating,
“We’ve dedicated considerable effort to understanding our members’ needs for better recognition and rewards.”
The launch of Classic Plus, a new category of reward seats, will significantly augment the program by providing access to over 20 million fresh flight rewards. Ms. Hudson noted that this expansion marks one of the most substantial developments in the program’s 35-year history.
She attributed the growth and prosperity of Qantas Loyalty to the active participation of members who accumulate and utilize points across the frequent flyer program, both independently and in collaboration with partners. This investment in enhancing reward availability reflects Qantas’ commitment to meeting the evolving needs of its loyal customer base.
Andrew Glance, CEO of Qantas Loyalty, emphasized that the widespread availability of Classic Plus rewards empowers frequent flyers with increased flexibility to fly to their desired destinations at their preferred times and with greater frequency, utilizing their points.
“The new type of reward seat will usually require more points than the highly sought after existing Classic seats, and will be available to all destinations on the Qantas international and domestic network, across
First, Business, Premium Economy and Economy cabins.We know how much our members love the existing reward seats and have been booking them in record numbers, so the new Classic Plus product we’re announcing today is over and above our commitment to 5 million Classic reward seats.”
Andrew Glance, CEO of Qantas Loyalty
Qantas remains steadfast in its pledge to provide over 5 million Classic reward seats across its own flights, Jetstar, and its extensive network of 45 partner airlines, with no alteration in the points required for booking since 2019.
Furthermore, Qantas is investing $60 million in additional flight rewards for frequent flyers this fiscal year. Notably, last October saw the addition of 6,000 new premium Classic reward seats to Europe during peak travel periods, further underscoring the airline’s commitment to enhancing the rewards experience for its members.
Financials and Buy-Back Update
Financial Update:
Anticipated Program Changes are poised to significantly enhance member engagement and contribute to the sustained growth of Qantas Loyalty, with a target of achieving $800 million to $1 billion in Underlying EBIT by FY30.
The introduction of the Classic Plus product represents an approximate $120 million investment in FY25, excluding program-related benefits. This investment encompasses the foregone revenue from displaced seat sales across the airlines and the non-cash impact resulting from fair value assumptions concerning future points sales within the Loyalty Segment. The total financial commitment will be effectively managed within the pre-existing planned customer investment budget of $230 million for FY25.
Following the rollout of the new product, Qantas Loyalty is now projected to generate between $500 million to $525 million in Underlying EBIT for FY24, with an expected return to approximately 10% growth in Underlying EBIT for FY25.
Share Buy-Back:
In line with the announcement made in February, the Group’s on-market share buy-back initiative will commence following the finalization of details regarding the Frequent Flyer program changes. With today’s announcement, the Group confirms the initiation of the buy-back program, amounting to up to $448 million, and is anticipated to conclude by 30th June 2024, contingent upon market volumes.
FAQs on the Qantas Loyalty Program
Frequently Asked Questions:
- When can Classic Plus reward seats be booked? Classic Plus reward seats can now be booked for one-way or return international Qantas-operated flights departing from Australia, with travel starting from July 1, 2024. By the end of the calendar year, they will be available to book and travel across the entire Qantas international and domestic network.
- How many Classic Plus reward seats will be available on each flight? The availability of Classic Plus reward seats on each flight is tied to specific commercial fare classes, encompassing most seats on the Qantas domestic and international network. Once fully rolled out, Classic Plus reward seats can be booked on any flight with these fare classes, subject to availability.
- Will Classic Plus reward seats be available on Jetstar or partner airlines? Classic Plus rewards will be exclusive to Qantas-operated flights. However, frequent flyers can still access Classic reward seats on Jetstar and our network of 45 partner airlines.
- Are the taxes, fees, and carrier charges (TFCCs) the same as Classic reward seats? TFCCs for Economy and Premium Economy seats on Classic Plus reward seats will mirror those of Classic reward seats. However, for Business and First seats, TFCCs will be higher than those for Classic reward seats.
- Are Classic Plus reward seats upgradable? Yes, Classic Plus reward seats are upgradable. Starting May 2024, frequent flyers can apply for upgrades from Classic Plus Business seats to First, which is unavailable with existing Classic reward seats.
- What’s the value per point for a Classic Plus Flight Reward? The value per point varies across economy and premium cabins, with Business and First seats offering higher value. Classic Plus reward seats will generally provide excellent value, similar to existing Classic reward seats.
- Can Classic Plus reward seats be booked via the contact centers? No, Classic Plus reward seats can only be booked online through qantas.com.
- Will Points Plus Pay still be available to book flights? Yes, frequent flyers can continue to use the Points Plus Pay option for flights. They can select a cash airfare and then adjust the Points Plus Pay slider on the payment screen to choose their preferred mix of points and cash.
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