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Qantas losses could impact Frequent Flyer Programme

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Qantas losses could impact Frequent Flyer Programme
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Qantas, Australia’s leading commercial airline, announced it would lose up to $300 million in the first half of its fiscal year. According to a report provided to LoyaltyTruth.com by Graeme Thomson, principal of Premium Group Marketing in New Zealand, this will be the first time the airline has recorded a loss in the first half since it was privatized during the 1990s.

The impact of the loss had immediate impact with the announcement of plans to reduce the job force at Qantas by about 1,000 heads. Potential longer term impact announced by the airline included divestiture of the airline’s investment in Jetstar Asia in Singapore and Jetstar Japan as well as possible reductions to or elimination of its frequent flyer programme.

Among other economic pressures, Qantas was appealing to the Australian legislature for relief from a Carbon tax which it says drove up annual operating costs by about $106 Million.

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