Qantas Shares Hit Record High After Loyalty Program Overhaul
Qantas shares surged to a record high on Thursday, driven by the implementation of a revamped frequent flyer program designed to cater to budget-conscious travelers. The adjusted program, slated for rollout over the next year, seeks to enhance customer retention and bolster program revenue.
The overhaul follows a tumultuous period for Qantas, which faced controversies including the unauthorized sale of flight tickets. The new program aims to regain customer trust and establish a renewed sense of loyalty.
Key changes include expanded availability of premium reward seats, partnerships with other airlines, and the introduction of reduced economy reward seat fares. Qantas Loyalty contributed approximately A$2.5 billion to the airline's fiscal 2024 revenue, accounting for 11% of its total earnings.
Market analysts attribute the share gains to increased holiday travel and the company's strong performance in the past year. The increased demand for domestic and international travel is expected to continue favoring Qantas.