Millions of travellers affected as redemption costs surge and surcharges climb Changes effective 5 August amid data breach fallout and customer frustration
Australia’s national carrier, Qantas, has announced immediate and sweeping changes to its Frequent Flyer program, marking the first significant overhaul since 2019. The move affects millions of members, with increased redemption costs for reward seats, higher fees, and adjustments to point-earning structures.
The announcement comes just weeks after Qantas confirmed a cybersecurity breach impacting up to six million customers. While the airline insists its core systems remain secure, the timing has added to customer unease, raising questions about value and trust within the loyalty program.
Points Devaluation Hits Premium Rewards and Raises Surcharges
The most substantial change is a 15–20% increase in points required for business and first-class Classic Reward seats on international flights, according to Qantas. Economy seats on domestic routes have also risen by 5%. For instance, a Classic Reward business-class flight from Sydney to Melbourne now costs 19,300 points, up from 18,400, while associated fees have risen from $55 to $76.
Internationally, passengers booking an economy reward seat from Sydney to London will need 63,000 points, up from 55,200, with surcharges remaining at $263.
These changes take effect from 5 August and are part of what Qantas Loyalty CEO Andrew Glance described as a necessary adjustment to « invest in enhancing the program for the long term ». He added that the airline plans to increase availability of reward seats year-on-year.
Despite the reduction in value for redemptions, Qantas claims members will benefit from the addition of up to one million more Classic Reward seats, through new partnerships with Hawaiian Airlines, Finnair, Air France, KLM and Iberia.
Jetstar Redemptions Fall as Qantas Increases Points Earning for Elite Flyers
In a contrasting move, Jetstar, Qantas’s low-cost subsidiary, is lowering the number of points required for some of its reward seats. A Sydney to Gold Coast redemption, for example, now requires 5,700 points, down from 6,400, with fees unchanged at $35.
Further changes include an increase in the number of Qantas Points earned on domestic flights by up to 25%, and the removal of earning caps for members travelling in premium cabins. A Platinum member flying business class between Sydney and Melbourne will now earn 3,500 points, compared to the previous 2,000.
These measures come as Qantas grapples with the fallout of a data breach affecting a third-party customer service platform. The airline confirmed that names, emails, phone numbers, dates of birth and Frequent Flyer numbers were among the information accessed. While Qantas asserts its own systems remain uncompromised, it admitted the volume of stolen data is expected to be significant.
As travellers recalculate the worth of their loyalty, Qantas’s changes highlight the growing tension between reward value and programme sustainability in a competitive airline industry.
