Why points get devalued, and how to protect yours

Imagine saving 200,000 Qantas Points for a business class trip to Europe. In August 2025, the same seat started costing up to 20% more points overnight. Nothing about the flight changed. Your points just bought less.

That's a devaluation, and it happens to every points program eventually. Here's why, what's changed recently in Australia, and how to protect your balance.

What a devaluation is

A devaluation is any change that makes your points buy less. It can be:

• Higher points prices for the same reward.
• Higher taxes and carrier charges on reward bookings.
• Worse transfer ratios from bank points to airline points.
• Lower earn rates, so each dollar earns fewer points.
• Fewer reward seats, which is harder to see but just as real.

Why programs devalue

Too many points chasing too few seats. Programs sell more points every year, through more partners. If the supply of reward seats doesn't grow as fast, prices have to rise.

Inflation. Fares, fuel and hotel rates go up. A points price set years ago gets cheaper in real terms the longer it stays still.

Cost pressure on partners. When banks earn less from cards, they buy fewer points or offer worse rates. That's exactly what happened after the RBA's card reforms.

Points held for years. Every point sitting in an account is a promise the program has to keep. Raising prices reduces what those promises cost.

Recent devaluations in Australia

Correct as of October 2026.

Not every change is bad. Qantas lowered prices on many short Jetstar flights in 2025, and has added redemption partners. But the overall direction is clear.

Five ways to protect your points

1. Earn and burn. Points lose value the longer you hold them. Save for a specific trip, then book it.
2. Keep points flexible. Bank points that can still move to several airlines can avoid a devaluation in any one of them. Points transfer partners shows where yours can go.
3. Book early when a change is announced. Programs usually give notice. Bookings made before the date normally keep the old price.
4. Don't buy points speculatively. Bought points only make sense for a booking you've already found.
5. Diversify. Holding points in more than one program spreads the risk.

Why programs announce some changes and not others

A program has to balance two things: keeping the business healthy and keeping members' trust. A big, announced change to the reward chart costs trust, so programs tend to save them for when they're unavoidable, and pair them with something positive, such as more seats or a new partner.

Smaller changes, like carrier charges or how many seats are released, are easier to make quietly. That's why it pays to watch what a booking actually costs you, not just the headline chart.

What I'd do now

1. Check what you're saving for, and whether you can book it this year.
2. Move nothing to an airline until you've found the seat.
3. Follow program news, so you hear about changes before they take effect.

To work out what your points are worth today, read What are your points worth?