Qantas Frequent Flyer rewards take a hit

By Brigid O’Connell
Sunday Herald Sun
February 19, 2012

QANTAS Frequent Flyer points will soon be devalued, with the airline citing pressures from the Federal Government’s carbon tax.

It is a triple whammy for the 8 million members of the customer loyalty program, with Qantas and Jetstar passengers already hit last week by further price hikes because of increased fuel costs and the carbon pricing scheme.

In an email to customers last week, Qantas announced there would be increases to the points required when paying for surcharges, fees and taxes on domestic and regional flights.

“Earlier this month Qantas announced that future ticket prices for Qantas and Jetstar passengers will be impacted by higher jet fuel costs and the Australian Government’s carbon pricing system,” wrote Sid Gokani, head of loyalty operations.

“As a result there will be increases to the points required when paying for surcharges, fees and taxes on Australian and New Zealand domestic and regional Classic Award flights.”

From April 1, the program’s 8 million members will be slugged an extra 350 points when paying for surcharges, fees and taxes on flights within Australia and New Zealand – rising to 750 on July 1.

A company spokesman said: “Qantas is not making additional money from the points increase – it simply reflects the additional costs associated with the high cost of fuel and the introduction of the carbon tax.”