Qantas to keep hold of loyalty scheme after pondering partial sale
Qantas Loyalty has reported its fifth straight year of double digit earnings growth in an otherwise calamitous set of financial results for the troubled airline.
The loyalty division was the one shining light as Qantas posted an underlying loss before tax of $646 million. Hefty restructuring costs and writedowns to its fleet saw the statutory loss sink to a $2.8 billion.
Qantas Loyalty posted record earnings before interest and tax of $286m, a 10 per cent rise on the previous year. The number of loyalty members climbed 720,000 to 10.1 million since June 2013 while award redemptions increased 11 per cent to 6.2m.
The airline started a massive cost cutting exercise earlier this year which resulted in 40 per cent of the broader marketing team being lost.
I got a propaganda email this morning urging my loyalty and reiterating that the tough times are behind it – was a bit ‘try hard’ and Qantas is obviously reinforcing its position as the airline of choice for business and the better-heeled travellers. Time will tell if this is appropriate but at least they seem to have a strategy. I wonder if prices will escalate because if they do, it could well be their total undoing.