Qantas Frequent Flyer and Velocity have millions of members each, and they’re among the most profitable parts of the airlines. Here’s how points really work, and why airlines love them so much.
Australia’s two big frequent flyer programs, Qantas Frequent Flyer and Virgin Australia’s Velocity, each have well over 10 million members.
Members earn points when they fly, but also when they spend on credit cards, shop at partner supermarkets and retailers, buy fuel, book hotels or switch energy providers.
How airlines make money
Frequent flyer programs are among the most profitable parts of an airline. Most of the money doesn’t come from flying at all.
Airlines sell points to partners, such as banks, credit card providers and retailers, which give them to their customers as rewards. The partner pays the airline for each point.
When a member later redeems points for a flight, the airline often fills a seat that might otherwise have gone empty, at relatively little cost. Many points are also never used, or are used on rewards that cost the airline less than it was paid.
Qantas Loyalty regularly earns hundreds of millions of dollars in profit a year, and has been one of the group’s most reliable earners, including during the pandemic when planes were grounded.
Points and status
Points and status are different things.
Points are a currency that can be spent on flights, upgrades, hotels, gift cards or products.
Status is earned through status credits, mainly from flying. Higher tiers, such as Silver, Gold, Platinum and above, bring benefits such as lounge access, priority check-in and boarding, extra baggage and better chances of upgrades. Status has to be re-earned each year.
Getting value
The value of a point varies widely. Points are generally worth the most when used for flights, particularly in business or first class on long-haul routes. They’re often worth far less when used for gift cards or products.
Reward seats are limited, and can be hard to find at busy times. Members also pay taxes and carrier charges on top of points.
Recent changes
Airlines regularly change their programs. Qantas increased the number of points needed for many Classic Reward flights in 2025, while adding more reward seats. It’s also changing how status credits are earned, with schemes such as Points Club and Green Tier closing at the end of 2026.
Consumer groups have long criticised loyalty programs for changing the rules, devaluing points and being hard to compare. In 2023, the Australian Competition and Consumer Commission found loyalty schemes can be confusing and warned against misleading claims.
Should you chase points?
Credit cards that earn points often come with high annual fees and interest rates. Financial experts say they only make sense for people who pay off the full balance every month and would spend the money anyway.
