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Qantas has reported a record half-year profit and used the strong result to launch a sweeping overhaul of its Frequent Flyer program, accelerate fleet renewal and unveil new international routes that further cement Australia’s flagship carrier as a dominant force in regional and long-haul travel.
Record Profit Underscores Post-Pandemic Rebound
The airline group posted an underlying profit before tax of about 1.46 billion Australian dollars for the six months to 31 December, surpassing its previous record and underscoring the strength of Australia’s travel rebound. Statutory profit after tax approached 1 billion dollars, as domestic and international demand remained resilient in the face of higher living costs.
Executives said yields have moderated from post-pandemic peaks but remain healthy, supported by strong premium demand and robust leisure traffic to destinations such as Japan, Bali and key domestic holiday hotspots. Jetstar, the group’s low-cost arm, again proved a major earnings driver with higher load factors and an expanded network.
The bumper result adds to a run of strong financial performances over the past two years and comes after a turbulent period marked by operational disruptions, customer dissatisfaction and legal challenges. Qantas leadership framed the latest figures as evidence that service levels are improving and that reinvestment in aircraft, people and the loyalty program is beginning to restore public confidence.
Shareholders are set to benefit from the turnaround through an interim dividend and an on-market share buyback, even as the group commits billions of dollars to new aircraft and product upgrades across its Australian and international networks.
Frequent Flyer Overhaul Targets Deeper Engagement
At the heart of Qantas’s announcement is what the airline describes as the biggest shake-up to its Frequent Flyer program in its history, with a clear focus on making status more flexible while increasing the ways members can earn rewards. Central to the changes is the introduction of status credit rollover, allowing members to carry a portion of surplus credits into their next membership year instead of losing them at renewal.
In a major structural shift, members will also be able to earn a capped number of status credits from everyday spending with selected credit card partners and major retailers, rather than solely from flying. While the cap is designed so that tier status still relies primarily on travel, the move pulls Qantas closer to global trends that reward broader engagement with an airline’s ecosystem.
From later in the decade, the number of status credits required to retain a tier will align with those needed to attain it, lifting the hurdle for frequent flyers who have previously benefited from lower renewal thresholds. At the same time, Qantas is promising enhanced recognition for its most loyal customers, including additional benefits for lifetime status holders and new vouchers and lounge invitations aimed at cementing high-value relationships.
The changes arrive alongside earlier announced adjustments to Classic Flight Rewards, with more reward seats and partners balanced by higher points requirements on many routes from August 2025. Analysts say the strategy is designed to lift the profitability of Qantas Loyalty, which the airline is targeting as a billion-dollar earnings engine by 2030.
More Reward Seats and a Broader Loyalty Ecosystem
Qantas is pairing structural changes to the Frequent Flyer scheme with a substantial expansion in reward seat availability and product choice. The airline has recently released hundreds of thousands of additional Classic Reward seats across domestic and international routes, including on dedicated “Points Planes” to popular destinations such as Paris, Los Angeles, Tokyo and Australian resort gateways like Hamilton Island and Cairns.
Jetstar’s domestic network is playing a larger role in the loyalty strategy, with a new lowest year-round Economy reward seat level starting from 5,700 points one way on short-haul domestic services across Australia and New Zealand, plus taxes, fees and carrier charges. The reduced entry point is intended to keep the program attractive to occasional travellers and younger members who may engage primarily through leisure trips and co-branded credit cards.
From mid-2025, Qantas will also increase the number of Qantas Points earned on domestic flights by up to 25 percent and boost status bonuses for elite members on Qantas-marketed services. In parallel, the carrier plans to unlock hundreds of thousands of additional reward seats with partner airlines, particularly in premium cabins on routes linking Australia with Europe, North America and Hawaii.
Travel industry observers note that while higher redemption costs will frustrate some members, the broadened earn opportunities and expanded seat inventory reflect an effort to reposition Qantas Frequent Flyer as a more transparent and aspirational program after a period of intense scrutiny from regulators and customers.
Fleet Renewal Accelerates Across Domestic and Long-Haul
The latest profit has also given Qantas more breathing room to press ahead with its multi-year fleet renewal, billed as the largest in the airline’s history. New-generation Airbus A321XLRs and A220s are progressively joining the domestic and regional fleet, replacing older Boeing 737s and smaller jets that have served the airline for decades.
The incoming aircraft will offer quieter cabins, lower fuel burn and significantly reduced emissions per seat, with updated interiors, new seats and modern inflight entertainment aimed at lifting the customer experience on key Australian routes. The narrowbody renewal is central to Qantas’s plan to maintain its edge on the Golden Triangle between Sydney, Melbourne and Brisbane, as well as on high-demand leisure corridors to Queensland and Western Australia.
On the long-haul front, Qantas is preparing for the arrival of Airbus A350-1000 aircraft that will operate ultra-long-haul services under its Project Sunrise initiative from 2027. While training and start-up costs have weighed on international earnings in the short term, management argues that the new aircraft will unlock a step-change in network efficiency and competitiveness on nonstop routes linking Australia with key cities in Europe and North America.
The group continues to invest in cabin refurbishments for existing widebody aircraft, including refreshed premium cabins and upgraded lounges in major Australian gateways, as it works to match tangible product improvements with the promises embedded in its revamped loyalty proposition.
New Routes Strengthen Australia’s Global Connectivity
Qantas is using its strengthened balance sheet and modernising fleet to further expand its international footprint, with new and restored routes aimed at both leisure and business travellers. A headline addition is a new seasonal nonstop service between Sydney and Las Vegas, which will make Qantas the first airline to operate direct flights linking Australia with the Nevada tourism hub.
The Las Vegas flights will operate during the northern winter, timed to coincide with major events including the Consumer Electronics Show and the National Rugby League’s annual season-opening fixtures in the city. The route is expected to save travellers around five hours of journey time by eliminating connections through other US gateways and to support two-way tourism, conference travel and premium leisure demand.
Elsewhere in the Americas and Europe, Qantas is fine-tuning capacity on existing services and adding extra frequencies to destinations that have proven popular since borders reopened. Seasonal flights to cities such as Rome and extended operations to Sapporo in Japan are part of a broader strategy to leverage the capabilities of the new fleet while feeding the loyalty program with attractive reward and cash fare options.
For Australian travellers, the combination of record profitability, a more flexible Frequent Flyer scheme, new aircraft and a growing route map suggests that the national carrier is intent on rewriting its narrative from one of crisis management to long-term investment, even as it faces competitive and regulatory pressure to ensure customers see tangible benefits from its resurgence.