Australia: Qantas has unveiled the biggest shake-up in the history of its frequent flyer programme, introducing sweeping reforms aimed at encouraging members to climb and retain higher status tiers while discouraging defections to rival airline schemes.
Announced during a period of strong financial performance, the changes will allow members to roll over a portion of unused status credits, the metric that determines tier levels, into the following membership year. Previously, unused credits were reset to zero annually, often forcing members to requalify from scratch.
However, the overhaul also raises the number of status credits required to maintain elite tiers such as Gold and Platinum, according to analysis by Finder. Unlike standard frequent flyer points, status credits unlock premium benefits including lounge access, priority boarding and additional baggage allowances regardless of ticket class.
Everyday spending now counts toward status
In a major shift, members will soon be able to earn status credits through everyday spending rather than only through flights, a trial launched in 2025 that will now become permanent later this year.
The airline said the reforms are designed to help members effectively strive toward that next tier, while also incentivising long-term loyalty through enhanced pathways to lifetime status, traditionally achieved after decades of flying.
Loyalty programme powers profit surge
The revamp comes as Qantas’ loyalty division continues to deliver strong earnings. The business recorded a 19 percent revenue increase in the latest half-year results, generating income largely by selling frequent flyer points to banks, credit card providers and retailers.
Overall, the airline posted a record pre-tax profit of $1.46 billion for the six months, buoyed by sustained travel demand despite cost-of-living pressures.
Australia’s largest airline credited new routes, higher flight frequencies to destinations including Japan and Bali, and more fuel-efficient aircraft for the improved performance.
Fleet renewal and jetstar growth drive outlook
Chief executive Vanessa Hudson is leading the company’s most ambitious fleet renewal program to date, replacing ageing domestic aircraft and investing in long-range planes to expand route flexibility.
Hudson said the new aircraft are delivering improved fuel efficiency, lower maintenance costs and higher customer satisfaction.
Revenue growth was recorded across the group’s operations, with budget subsidiary Jetstar emerging as a standout performer. Jetstar reported an 8 percent rise in revenue alongside widening profit margins.
Travel demand remains resilient
Despite economic pressures, travel continues to rank as a priority for consumers. Qantas expects strong demand to persist while monitoring economic conditions in the United States. The airline also announced a 19.8-cent interim dividend per share, a 20 percent increase, alongside a share buyback programme aimed at boosting shareholder returns.
Industry analysts say the frequent flyer overhaul underscores how loyalty programs have become central profit drivers for airlines, influencing customer purchasing decisions even as ticket prices fluctuate.
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