Qantas shares boosted by loyalty program launch
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More news: Shares in Qantas lifted on the ASX after the airline unveiled a $120 million expansion to its frequent flyer program and opened a $448 million share buyback.
Qantas shares were up 5.9% to $5.75 by 12:35pm AEDT.
Qantas expands loyalty program, opens $448m share buyback
The news: Qantas has launched a $120 million expansion to its frequent flyer program and opened a $448 million share buyback.
The numbers: The new “Classic Plus” launch, which represents a $120 million investment in the 2025 financial year, will add 20 million more reward seats to the company's frequent flyer program in one of the biggest expansions in its 35-year history.
The airline said that it expects its loyalty business to deliver between $500 million and $525 million in underling EBIT in the 2024 financial year, before returning to growth of around 10% in underlying EBIT in FY25.
It said the new product will help drive the long-term growth of Qantas' loyalty segment as it continues to target $800 million to $1 billion in underlying EBIT by 2030.
Qantas has also launched a $448 million share buyback, expected to finalise by 30 June.
The context: Qantas said the new "Classic Plus" program is a new way for frequent flyer members to use their Qantas points to book flights, and reward seats can be booked on international flights departing Australia for travel from 1 July. It will then be rolled out across the rest of the airline's international and domestic network by the end of the year.
The source: ASX announcement
