Here it is <redacted due to copyright>
Main points:
Velocity now counts nearly every second Australian as a member as the value-focused airline sets its sights on loyalty as a bigger revenue driver.
Velocity chief executive Nick Rohrlach said the program had reached 12 million members after a year in which it signed up a million new members – including many disgruntled Qantas customers.
But Mr Rohrlach said Velocity had no plans to introduce another redemption tier, given its members could still redeem seats on 80 per cent of future Virgin flights.
“There’s still a seat to London every day in July with one of our partners. It might be a different partner every day but because we’ve got all these different airlines, there’s a variety of routes,” he said.
Mr Rohrlach hit back at suggestions that points have been devalued, saying the lowest redemption rates have actually fallen since COVID-19.
Velocity reported $330 million revenue and profit of $77 million – a 70 per cent increase in revenue and 30 per cent increase in profit – in the 2023 financial year.
Virgin said its net profit after tax was $129 million, from revenue of $5 billion in the year to June 30, up 124 per cent. It was Virgin’s first profit in 11 years.
While Qantas has had to find new ways to help members spend points flying, Mr Rohrlach said Velocity was still gathering new partners. Airlines get revenue by charging partners for points that they then give to customers as loyalty rewards.
Mr Rohrlach said the airline’s small business program,
Virgin Australia Business Flyer, had tripled its membership since COVID-19 in line with the new-look
Virgin Australia’s focus on the small and medium-sized enterprises market.