👉 Background: Qantas is the largest and longest-serving airline carrier in Australia - but the past few years have been full of controversies. From its mega profits to ghost flights and CEO resignation,

👉 What happened: Now, Qantas has announced a major upgrade to its Frequent Flyer rewards program where it will offer 20 million new Frequent Flyer seats, called Qantas Classic Plus.

👉 What else: There's a bit of a catch. While there are more seats available, they could cost you up to three times more reward points than the current Classic Rewards system. The new system will kick in from July 1st this year and is expected to cost Qantas over $120 million in FY25 alone.

What's the key learning?

💡There’s a fine line between investing in customer trust but not significantly impacting your profits and margins.

💡Frequent Flyer customers have been accruing points faster than. In fact, there was  a 13% increase in Frequent Flyer points in the last six months and an increase of 48 per cent in the last financial year. But these customers haven’t been able to “burn” the points at the same rate.

💡The good news is Qantas' 16.6 million Frequent Flyer customers will be able to find more flights. But for Qantas, it means less customers actually paying for flights. And investors are hoping this doesn't impact their long-term prospects.

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