Qantas Loyalty generates USD272m profit, membership climbs to 12.3 million in FY2018

    Qantas Group reported (23-Aug-2018) the following highlights for Qantas Loyalty for FY2018:

    • Record underlying EBIT result of AUD372 million (USD272.1 million), up 1% year-on-year;
    • Operating margin dropped 0.4ppts to 24.1%, due to a mix of market conditions and bonus points promotions to support the launch of new financial products;
    • Qantas reported the impact of interchange fee adjustments continued in H2FY2018 and was mitigated by consumer demand for Qantas Points. Qantas noted that while total growth in new credit cards issued in Australia shrank 4%, cards that earn Qantas Points grew 7%;
    • Frequent flyer programme membership rose 4.2% to 12.3 million. Levels of member engagement increased, helped by the widening number of partners in the programme and additional ‘opt-ins’ among Woolworths customers to earn Qantas Points;
    • There was continued revenue growth from new ventures, including health insurance and Qantas’ own premier credit card. New business delivered positive EBIT contribution. Further expansion into financial services is planned in 1HFY2019. [more – original PR]