Qantas Frequent Flyer Points Face Devaluation Tomorrow
From August 5, Qantas will increase the number of points required for reward seats across its network. Business and first-class redemptions will cost up to 20% more points. Fees and surcharges are also rising, especially in premium cabins. The airline states these adjustments aim to sustain and grow the loyalty program.
Industry Reaction and Immediate Action
Mark Trim, Managing Director of The Well Connected Traveller, says travellers are already moving to secure bookings before the changes. Australians are currently sitting on billions of frequent flyer points. The average balance reaches around 73,000 points per member. About 15% of Australians, or 3.2 million people, remain uncertain about maximising frequent flyer programs.
Trim describes a common mistake where members redeem points for retail items or use ‘points + pay’ fares. “It’s a terrible burn rate for your points,” he tells Forbes Australia. “Unless you have an excessive balance, avoid those options.” He advises reserving points for international business and first-class flight upgrades for significantly better value. “Economy redemptions are fine,” Trim states, “but the comparative value in a premium cabin is far greater.”
Mark Trim, Managing Director of The Well Connected Traveller
Timing and Redemption Options
Trim stresses the importance of timing bookings well in advance or targeting last-minute seat releases. “We’re seeing some airlines drop in points seats at the last minute when they can’t sell remaining inventory,” he says. This gives opportunities for savvy travellers to grab premium seats with points just days before departure.
Alternative Points Strategies
For those seeking more flexibility, Trim highlights the benefit of American Express Membership Rewards. “Unlike being locked into a single airline program like Qantas, Amex lets members strategically move their points based on real-time availability,” he explains. Travellers can target the best value redemptions across multiple frequent flyer programs.
Qantas Business Rewards AMEX Card
Details of the August 5 Changes
Qantas will raise points requirements for most Classic Reward seats, especially in business and first class. The increase will be between 15% and 20% for these categories. For example, a Sydney to Melbourne Business upgrade will move from 18,400 points and $55 to 19,300 points and $76. A Sydney to London Economy seat will jump from 55,200 points and $263 to 63,500 points and the same cash charge.
Despite these changes, Qantas plans to add over 1 million Classic Reward seats, collaborating with new partners such as Hawaiian Airlines, Finnair, Air France, KLM and Iberia. The airline last updated the program in 2019.
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Qantas Stance and Rationale
Qantas Loyalty CEO Andrew Glance insists the changes will “enhance the ways our members can book Classic Reward seats” and increase access to international destinations and premium cabins. The move follows increased demand and expanded global partnerships. Qantas claims that Classic Plus has already quadrupled seat availability and helped drive an 80% year-on-year increase in members travelling overseas with points.
Glance says, “These adjustments will ensure we can continue to invest in enhancing the program for the long term and continue to grow the levels of Classic and Classic Plus Reward seat availability for members year on year.”
Andrew Glance, CEO Qantas Loyalty
Practical Advice for Frequent Flyers
Trim strongly recommends booking premium cabin redemptions before August 5. He states, “The value per point is significantly better in premium cabins than in economy.” If availability becomes tight, Trim notes that the ‘Classic Plus’ option—while more costly—opens up greater access, especially on busy routes. “Classic Plus ties the points rate to the cash fare,” he explains.
Cash fees, taxes and carrier charges all add costs to a ‘points’ ticket, as Trim warns. These extra charges can run to hundreds of dollars on international flights. He advises members to “look for premium opportunities that are available now” rather than hoarding points. Trim suggests booking well ahead or seizing last-minute seat releases to get optimal value before the program shifts.
Members who act swiftly can still unlock valuable travel experiences before the new prices take effect.
