Qantas is considering the partial float of its frequent flyer business later this year, in a move that could raise between A$2bn (US$1.9bn) and A$3.5bn for Australia's biggest airline.

The Qantas announcement comes as some Asian flagship carriers are also studying whether to spin off their passenger loyalty programmes - including Korean Air and Japan Airlines - at a time when their main airline business is facing soaring fuel costs and stiffer competition from low-cost carriers, according to people close to the airlines.