Qantas Frequent Flyer Program Unveils Classic Plus Flight Rewards

In a landmark expansion, Qantas Frequent Flyers are set to enjoy over 20 million additional reward seats with the introduction of Classic Plus Flight Rewards. This new tier of flight rewards is poised to revolutionize the way members utilize their Qantas Points, facilitating easier travel to global hotspots such as London, Tokyo, New York, and Singapore, even during peak seasons.

Classic Plus Flight Rewards, while typically requiring more points than the existing Classic reward seats, promise exceptional value and broader availability. These seats are also upgrade-eligible, adding another layer of flexibility for travellers.

The points needed for Classic Plus bookings will fluctuate similarly to standard airfares, meaning lower point requirements during off-peak times or when booked in advance and higher during peak periods. Notably, during promotional events, Classic Plus seats may even become more affordable than Classic reward seats on the same route.

Starting today, Classic Plus reward seats are available for booking on Qantas international flights departing from Australia, with travel commencing from 1 July 2024. This option is exclusively accessible via qantas.com and will extend to the entire Qantas international and domestic network on Qantas-operated flights by the end of the year.

By the close of 2024, as Classic Plus fully integrates across the network, members will have accessed 20 million new reward seats, maintaining a similar level of availability moving forward.

Vanessa Hudson, Qantas Group CEO, emphasized the significance of the Frequent Flyer program and the company’s commitment to rewarding customer loyalty. “We’re thrilled to offer over 20 million new flight rewards through Classic Plus, marking a significant milestone in our program’s 35-year history,” said Hudson.

Andrew Glance, Qantas Loyalty CEO, added, “Classic Plus ensures our frequent flyers have more opportunities to travel as they wish, enhancing the value of every point earned.”

Qantas remains dedicated to its Classic rewards, offering over 5 million seats across Qantas, Jetstar, and 45 partner airlines without altering the points needed for bookings since 2019. Qantas invested $60 million this financial year in additional flight rewards, including 6,000 new premium Classic reward seats in Europe.

These program enhancements are expected to boost member engagement significantly and contribute to the sustained growth of Qantas Loyalty, targeting an Underlying EBIT of $800 million to $1 billion by FY30. The Classic Plus product represents a $120 million investment in FY25, signalling Qantas’s unwavering commitment to its loyal customers.

Qantas is set to invest approximately $120 million in the Classic Plus product for FY25, a move that excludes the program’s direct benefits. This investment accounts for the revenue lost from seats displaced by the new rewards and the non-cash impact on fair value assumptions for future point sales within the Loyalty Segment. The financial commitment is part of a broader $230 million customer investment planned for FY25.

The introduction of Classic Plus is anticipated to significantly enhance Qantas Loyalty’s financial performance. Expectations are to deliver an Underlying EBIT of $500 – $525 million in FY24. This marks a return to growth, with an estimated 10% increase in Underlying EBIT for FY25.

In line with the strategy outlined in February, Qantas will initiate an on-market share buy-back program following the announcement of changes to the Frequent Flyer program. The buy-back, involving up to $448 million, will begin promptly and aim to be completed by 30 June 2024, contingent on market conditions.

This strategic development underscores Qantas’s commitment to enhancing shareholder value while simultaneously enriching the Frequent Flyer program, ensuring a robust growth trajectory for the airline’s loyalty operations.