Qantas’s flagship loyalty programme has recently reduced the average value of its points for the first time since 2019, moving from an estimated 1.8 cents per point to about 1.6 cents based on independent analysis. This shift comes at a time when rival programmes such as Virgin Australia’s Velocity are holding steady at roughly 1.7 cents per point and this is creating a more competitive landscape for value-focused travellers. Loyalty programmes have become a core part of how airlines drive revenue and customer stickiness, but regular “re-pricing” of points means members need to keep track of what their balances are actually worth.
Digging into the numbers, analysts note that more Qantas points are now required for many classic reward flights and upgrades than in previous years. A popular long-haul business class return trip from Australia to Europe now delivers an effective return of around 1.57 cents per point once the higher points requirement and taxes are factored in. By contrast, Virgin’s Velocity programme has maintained its per point value and upgrading to business class on certain long haul partner routes currently stands out as one of the strongest uses of Velocity balances. For Qantas, the sweet spots seem to remain in international upgrades and some business class redemptions to destinations such as Japan where seat availability and pricing still offer comparatively better returns.
The broader loyalty market is also shifting, with several international programmes adjusting their rates. A major Asian carrier’s KrisFlyer scheme recently saw a modest devaluation from about 1.6 to 1.5 cents per point, while a new combined programme from Alaska Airlines and Hawaiian Airlines, branded Atmos Rewards, is assessed at roughly 2.5 cents per point and is one of the highest valuations in the current analysis. Atmos Rewards looks particularly interesting for Australian points collectors because it can be used to book Qantas-operated flights such as premium economy from Sydney or Brisbane to Auckland for around 10,000 points plus taxes and it typically avoids passing on Qantas carrier charges, instead charging only third party taxes and a small fixed partner booking fee. Other strong value international options include Virgin Atlantic’s programme at about 2.2 cents per point and schemes from Qatar Airways and Cathay Pacific at around 2.1 cents. At the opposite end, programmes like Air New Zealand’s Airpoints and Emirates Skywards are assessed at roughly 1 cent and 1.3 cents per point respectively and this reflects higher surcharges, tighter availability and recent policy changes that have dampened engagement.
Looking at the bigger picture it seems that headline membership numbers do not always translate into active and engaged flyers getting strong value. Research from a specialist loyalty consultancy shows that in Australia, Qantas sits among the country’s largest programmes with around 18 million members and it ranks behind major supermarket schemes but ahead of several department store and airline rivals, while Virgin’s Velocity also features in the top tier. However, an estimated 40% of Qantas members and 45% of Velocity members are considered inactive and some international programmes show disengagement rates as high as 75% of their local membership. Independent loyalty experts suggest that high carrier charges, restricted premium reward access and less favourable credit card transfer rates have all contributed to frustration in certain schemes, particularly on premium routes to Europe. For travellers, the trend points to a world where comparing earn rates, redemption tables, partner networks and extra fees across different programmes is becoming more important than simply collecting the biggest balance from a single airline.
