Qantas just devalued your frequent flyer points, but there’s an upside

Qantas has just raised the bar for its frequent flyers, requiring more points for its Classic Reward seats. Since last Tuesday, a Classic Rewards economy seat aboard Qantas between Melbourne and Sydney costs 9200 points, an increase of 1200 points, or 15 per cent. The fees stay the same, at $55.

In business class, a Classic Rewards seat on that flight now requires 19,300 points, an increase of less than 5 per cent, plus a $21 increase in fees. On a Qantas Sydney-London flight, a Classic Rewards seat in economy class now costs 63,500 points, which is also a 15 per cent rise on the 55,200 points before August 5. Fees remain the same at $263.

Regardless of which class you’re flying, a Classic Reward seat now costs about 15-20 per cent more points than it did before August 5. The exception is premium economy, business and first-class seats aboard flights between 600 and 2400 miles (965 and 3862 kilometres), which have only increased by about 5 per cent. The number of points required for an International Classic Upgrade Reward to business class has now increased by 10-20 per cent, depending on the flight distance, with shorter flights around the 10 per cent mark.

At the same time, Qantas has added a sugarcoating to the pill, announcing 400,000 more reward seats available across its domestic and international fleet in all cabins. Based on figures supplied in Qantas’ 2024 annual report, those 400,000 seats represent about 0.6 per cent of seats on all the airline’s flights. Most of those seats will be on dedicated Points Planes, where every seat across all cabins can be secured with points (the first release launched last week and finished on Saturday, but Qantas promises more to come). The deal includes almost 25,000 seats to Paris and Los Angeles on Qantas flights, more than 40,000 seats on Points Planes to Japan and Singapore on Jetstar flights.

Also, almost 135,000 seats will be available on Points Planes for just 5700 points, the lowest reward seat fare in Australia and on Jetstar flights within New Zealand. However, the availability of reward seats on some of its most desirable routes is skewed towards off-peak periods. For example, those 25,000 reward seats to Paris are available for travel only in November 2025, to Los Angeles in February 2026. With excess capacity in those months, the airline is offering reward seats to soak up seats that might otherwise be empty.

Another plus, Qantas flyers now earn more points when they fly with the airline. Effective from July 21, just over two weeks before this latest announcement, Qantas boosted the number of frequent flyer points earned on its domestic flights by 25 per cent. For the airlines’ higher-tier frequent flyers, holding Silver status and above, the deal is even sweeter. A Qantas Platinum member flying business class between Sydney and Melbourne now earns 3500 Qantas points, an increase of 1500 points, or 75 per cent.

On international flights, the increase is not nearly as generous. A Qantas Gold member flying Sydney to Los Angeles in the airline’s business class now earns 25,594 Qantas points, about a 20 per cent increase. Qantas has also removed the “earn” cap for tiered members travelling in premium cabins, set to deliver almost 4 billion additional points for members each year.

Winners and losers

Anyone earning points flying premium economy or better with Qantas and using those points to pay for Classic Reward seats is probably on a winner. Especially so if they’re sitting on Silver tier or better, earning points on flights of under 2400 miles and using those points to pay for flights over the same distance. For the rest of us, earning more points per mile and with more Classic Reward seats available, there’s plenty to like about the new system. Only those who banked a big points balance before August 5, and who now find those points worth less, might have cause to groan, though Qantas telegraphed its intent to devalue its points early this year.

Squeezing maximum value from those Qantas points

To maximise your chances of making a booking with points, book far in advance, 11 or even 12 months out is ideal. That also applies to points upgrades. Use points when prices spike, during school holiday periods or European summer periods, but Qantas strangles the number of Classic Reward seats available in peak times. Flying aboard partner airlines is a smart way to use Qantas points, and that brings flights aboard some of the world’s best airlines including Japan Airlines, Qatar Airways and Emirates into view.

One of the best ways to use Qantas points is a Oneworld Classic Flight Reward around-the-world business class flight ticket, which now starts at 365,800 Qantas Points plus fees and taxes. This gives you up to five stopovers on the oneworld network, with 12 months to complete your itinerary, travelling up to 35,000 miles and with lounge access and priority perks at every airport. Using points for gift cards, hotels or shopping should be a last resort.

The value of such redemptions is generally about 0.5¢-0.8¢ a point, compared with 2¢-6¢ a point for premium flights. Above all, find ways to use your points on flights. Don’t expect the value of your frequent flyer points to stay constant, they will erode over time. Points that gather dust are, well, pointless.

The philosophy behind frequent flyer points

Unlike budget carriers, which know you’re only flying with them because they offer the cheapest flight, legacy carriers want you to keep flying with them, and that’s the rationale for frequent flyer programs. Nothing to do with generosity, these programs are engineered to incentivise repeat business. Once you’re signed up and start to acquire points, you’re a loyal customer and the perks – the preferential check-in, the lounge access, the better seat choice – play to our egos and reinforce loyalty to the brand.

You’re invested in that airline, and the more points you acquire, the more likely you are to travel with them, even when there are cheaper or better alternatives. Frequent flyer programs are hugely profitable, delivering billions of dollars to airlines from partnerships with banks, supermarkets and retail partners. US budget carrier Spirit Airlines’ frequent flyer program is reckoned to be worth more than the airline itself, and the reason it keeps flying.