Monday - Qantas Airways Ltd. (QAN:AU) (OTC: QABSY) has seen its stock price target raised by Jefferies to AUD7.94 from AUD7.62, while the firm maintained a Buy rating on the airline's stock. The adjustment came after Qantas management announced enhancements to their Qantas Loyalty program aimed at increasing member engagement.
On April 8, 2024, Qantas outlined modifications to its loyalty program, which are designed to facilitate point redemption for members, thus boosting their potential to earn points. The introduction of 20 million Classic Plus seats is anticipated to bolster engagement among members, which is considered vital for reaching the Loyalty program's projected EBIT of $0.8 billion to $1 billion by the financial year 2030.
The upgraded price target reflects the analyst's confidence in the potential of the loyalty program changes to contribute significantly to Qantas's financial goals. The airline's efforts to enhance its Loyalty program underscores its commitment to customer satisfaction and long-term financial health.
Qantas's focus on member engagement through the release of additional seats for point redemption is a strategic move to sustain and grow its Loyalty program's success. The program adjustments are expected to provide a more accessible and rewarding experience for Qantas's frequent flyers.
The stock's Buy rating is supported by the belief that the changes to the Loyalty program will lead to increased customer engagement and contribute to the airline's revenue growth. Qantas continues to pursue initiatives that aim to improve its service offerings and financial performance.
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