Qantas has launched a new credit card promising more frequent flyer points at the same time as its loyalty scheme has helped power the airline's share price to an almost 10-year high.

Qantas on Friday confirmed long-speculated plans to offer its own credit card through a tie-up with Mastercard and investment bank Citi.

Qantas Loyalty chief executive Lesley Grant said the card was a response to the strong consumer demand for points as part of everyday spending.

"Around 35 per cent of credit card spend in Australia earn Qantas Points, which shows strong interest in this type of reward but also plenty of room for growth," said Ms Grant.