Qantas shares could increase 40% after new rewards program announcement

Qantas recently released a press release announcing updates to their popular Qantas Frequent Flyers program.

For those who collect points, this will come as exciting news, as Frequent Flyers will now have access to over 20 million more reward seats with the launch of Classic Plus Flight Rewards.

This move is the biggest expansion to the program in its 35-year history, and will make it easier to travel to places like London, Tokyo, New York and Singapore with Qantas Points, even during peak times (Qantas).

In light of this news, Goldman Sachs has indicated a buy rating and a $8.05 price target on Qantas' shares, which could mean a 41% growth over the next year.

However, in addition to this, Goldman also expects this change to have a negative impact on earnings this year for Qantas.