Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Qantas (ASX:QAN) shares in focus on frequent flyer expansion

Qantas Airways Limited (ASX: QAN) shares are under the spotlight after the airline revealed an expanded frequent flyer program.

Rewards program expanded

Qantas shares are up 3%  after the airline announced frequent flyers will have access to over 20 million more reward seats with the launch of its ‘classic plus flight rewards’, which it described as a new way for members to use their Qantas points to book flights.

The airline said the change is one of the biggest ever expansion of the frequent flyer program in its 35-year history and it “will make it easier to travel to places like London, Tokyo, New York and Singapore with Qantas points, even during peak times”.

These ‘classic plus’ seats will represent “some of the best value across the frequent flyer program with much wider availability. Classic plus reward seats are also eligible for upgrades.”

The points required to book classic plus reward seats will vary like normal airfares, which means they’ll be lower during off-peak periods or when booking early, and higher during peak periods.

These new reward seats can be booked from today on Qantas international flights departing Australia for travel from 1 July 2024 and will be rolled out across the rest of the airline’s international and domestic network on Qantas-operated flights by the end of the year.

Qantas said it would continue to offer more than 5 million existing classic reward seats across Qantas, Jetstar and 45 partner airlines, with no change to the points required to book these seats since 2019.

Management commentary

The Qantas CEO Vanessa Hudson said:

The Qantas Frequent Flyer program is an integral part of Qantas and has always been about recognising our customers for their loyalty. We’ve spent a lot of time listening to members about how we can better reward them.

The growth and success of Qantas Loyalty is driven by engaged members who earn and redeem points across the frequent flyer program, including with our partners, and that’s why we’re investing in making more seats available to book with points.

Financial update

Qantas said the program changes are expected to deliver a “substantial improvement in member engagement and will help drive the long-term growth of Qantas Loyalty as it continues to target $800 million – $1 billion” of underlying EBIT (EBIT explained) by FY30. This could help drive the Qantas share price higher, if it can grow underlying EBIT to this range.

The classic plus product represents an investment of approximately $120 million in FY25, excluding benefits of the program. The investment includes the value of displaced seat revenue in the airlines as well as other financial aspects of the plan.

Qantas said the combined investment will be managed within the existing planned customer investment of $230 million for FY25.

After the launch of the new product, Qantas Loyalty is now expected to deliver between $500 million to $525 million of underlying EBIT in FY24 before returning to growth of around 10% in FY25.

The airline also said the on-market share buyback will resume now that it has announced this news.

Qantas seems to think this is the right move, which may ultimately help the Qantas share price over time.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content