Qantas Devalues Frequent Flyer Points. What Now?

Qantas has changed the rules again, and this time, it hits where it hurts most: our Frequent Flyer points. Starting August 5, the airline increased the points required for reward seats and upgrades by up to 20%. This isn’t the first cutback. In the past 18 months, we’ve seen higher surcharges and the launch of pricier “Classic Plus” rewards, slowly shrinking the value of what many of us saved for years.

For millions of Australians, Qantas points are more than just numbers. They’re the family holiday fund, the business trip upgrade, the loyalty badge we earn by swiping credit cards and booking flights. Now, with the latest hike, those hard‑earned points simply don’t stretch as far.

We will study what changed, why Qantas made the move, and what it means for travelers who built their plans around the program.

What Happened? Details of the Devaluation

Qantas raised redemption rates across the board:

• Economy Classic Reward seats have increased by about 15% on domestic routes and up to 20% on international routes.
• Business and First class redemptions on popular long‑haul routes also face the steepest increases, up to 20%.
• Upgrade requests now demand 10–20% more points, depending on route length; long-haul is costlier than short-haul.

Fees have increased, too. For example, Sydney–London business seats came with about A$473 in charges before, now those top A$648, a 37% increase.

Qantas claims more than 1 million extra Classic Reward seats have been added, including new airline partners, to help offset the devaluation, though these expansions come with higher-cost tickets.

Why Did Qantas Do It?

Qantas last adjusted reward rates in 2019. They say this update aligns with inflation and program costs that have risen faster than point prices.

The airline’s Loyalty division earns billions by selling points to credit-card partners and retail allies, like Woolworths, and doesn’t benefit if points go unredeemed (around 30% never get used).

Recorded loyalty earnings hit A$511 million in EBIT, a 37% jump since 2019. To keep delivering profits, the program needs more margin via higher point costs and fees.

Timing also matters: With looming changes to Australia’s credit card interchange fees, Qantas is likely tightening program economics to protect its revenue stream.

Impact on Frequent Flyers

Around 15 million Australians, nearly half the population, are members of the Qantas Frequent Flyer program worldwide.

For everyday travelers, the change is hard to swallow. A Sydney–Melbourne economy seat now costs 15% more points, while high‑value routes like Sydney, London in business can be 20% costlier, with added fees.

People who saved points for big international trips will find their balances don’t go as far. Even account holders who flew or swiped cards hoping to upgrade now need many more points to reach the same goal.

Casual travelers may miss out, while elite or high-balance users still have access, if they’re willing to spend more. Complaints are already surfacing online as confidence in the program erodes.

Comparison with Other Airlines

Qantas isn’t alone in adjusting loyalty programs. Virgin Australia’s Velocity has switched to spending-based status earning, and value across the industry is slipping.

But Qantas’ change is particularly sharp, to 20% jump in redemption cost, compared to incremental tweaks in other airlines. In contrast, many global carriers follow more stable point schedules.

Still, Qantas has expanded its Classic Plus reward option, tied to ticket cost, not points, but these seats suit premium travel customers more than casual flyers.

Broader Market Implications

This devaluation may weaken trust in loyalty systems. When Qantas loyalty feels like a financial tool rather than a perk, some members may drift toward competitors or alliances.

Bank and retail partners like Woolworths may reassess how much points remain attractive to customers, impacting the broader points economy in Australia.

With less clear reward value, travelers may rely more on cash pricing or flexible capture programs rather than airline-specific points accumulation.

Conclusion

Qantas has delivered the starkest update in its Frequent Flyer history: up to 20% higher point costs, rising fees, and a shifting loyalty model that favors high spenders and partners over everyday flyers. Although Qantas has promised additional seats and improved earning rates, these adjustments arrive afterward and do not fully make up for the points devaluation.

What we see now may be the start of a new era: loyalty programs built more for airline financial performance than passenger perks. As redemption value fades, travelers and program partners face hard choices about loyalty and return on points.

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Disclaimer:

This content is for informational purposes only and not financial advice. Always conduct your research.