Are Your Points Losing Value? Loyalty Point Devaluation in 2026
Your points balance can shrink in value without a single point leaving your account. Here's how devaluation works — and how to stay ahead of it.
Here's the uncomfortable truth about loyalty points: they're a currency the issuer controls, and issuers can quietly make them worth less. It doesn't show up as fewer points in your account — it shows up as the same reward suddenly costing more of them.
That's devaluation, and 2025–26 has been a notable stretch for it. Both Qantas Points and Singapore Airlines KrisFlyer saw effective devaluations through late 2025 as redemption prices and carrier charges rose. If your plan is to hoard points for 'someday', this is the risk you're carrying.
What devaluation actually is
Devaluation is when a program increases the number of points needed for a reward, or adds charges on top, so each point buys less than it used to. The point count in your account is unchanged — its purchasing power isn't.
It's rarely announced as a 'devaluation'. It arrives as a routine 'award chart update' or a lift in carrier charges, and the effect is the same: the redemption you were saving for now costs more.
Why it happens
- Points are a liability. Every unredeemed point is money a program owes. Raising redemption prices reduces that liability.
- Costs rise. Higher fuel, fares and partner costs get passed through as higher points prices and charges.
- There's little downside for the issuer. Most members don't notice a gradual erosion, so programs can adjust with limited backlash.
What to do about it
- Don't hoard indefinitely. Points are a currency that can lose value, not an investment that grows. A balance you're 'saving' is quietly at risk.
- Redeem when you find good value. If a redemption is worth it today, taking it beats gambling that it'll still be there — and still cost the same — next year.
- Keep some in flexible forms. Value you can turn into dollars off or gift cards is harder to devalue than a specific award chart.
Frequently asked questions
What is points devaluation?
It's when a loyalty program raises the number of points needed for a reward (or adds charges), so each point buys less. Your balance stays the same, but its purchasing power falls.
Did points really lose value in 2025–26?
Some did. Independent valuations noted effective devaluations for Qantas Points and Singapore Airlines KrisFlyer through late 2025, driven by higher redemption requirements and carrier charges.
Should I just redeem all my points now?
Not blindly — redeem when you find genuine value. The point is to avoid hoarding a large balance for years, because that's when devaluation and expiry quietly eat your value.
How do I protect against devaluation?
Use points when a redemption is worth it, avoid sitting on huge balances, and keep some value in flexible forms (dollars off, gift cards) that aren't tied to a single award chart.
Turn points you'd never use into gift cards
Mavitra lets Australians convert loyalty points into gift cards for everyday brands — a practical way to get value from points sitting idle. Points in, gift cards out.
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