Iberia & BA Move To Revenue Based Avios Earning…

In unexpected news, it’s been announced that both Iberia and British Airways are moving to a revenue based Avios earning program. Previously Iberia & BA issued Avios based on the distance flown rather than the amount spent. These latest changes will see those with elite status and spending the most on flights earning the most Avios…

When does the change to Revenue-Based Avios Earning happen?

For Iberia, the change has already been implemented and for BA the change will happen in 2023 (date yet to be confirmed)

What is the earning rate?

Iberia members will earn the following Avios per €1 based on their status level.

• Clasica: 5 Avios per €1 spent.
• Plata: 6 Avios per €1 spent.
• Oro: 7 Avios per €1 spent.
• Platino, Infinita and Infinito Prime: 8 Avios per €1 spent.

Whilst this might not seem too bad remember that you will only earn on your net spending, excluding taxes or fees. With taxes & fees often forming a large part of any fare you might be earning a lot fewer Avios than you expect.

One (small) benefit of the change is that you will be able to earn Avios on things like extra baggage and seat selection.

We’d imagine BA will be following a similar system but we don’t have any details yet.

How does that compare to the current/previous Avios earning rate?

At the moment a return Economy flight to New York booking into Economy lowest (Q, O, G) will net you 1,730 Avios as a ‘Blue’ member with BA regardless of how much you paid for your ticket. If BA implemented a similar earning rate to Iberia for their lowest status members (5 Avios per £1) you’d only earn 5 Avios for a similar return fare we found in January.

As you can see the ‘fare’ is only £1 and this is the only part that you earn Avios on so you’d earn a measly 5 Avios. A HUGE downgrade from the 1,730 you’d earn under the current rules. You can calculate how many Avios you currently earn per flight on BA’s website here – https://www.britishairways.com/travel/flight-calculator/execclub/_gf/en_gb

Is the way status is earnt changing?

No. There is no change to the way you earn status with Iberia. The existing Elite Points system remains. As Iberia’s Elite Status system is staying the same we can probably safely assume that the same will be true with British Airways’ Tier Points system in 2023.

Conclusion

No matter how Iberia/BA tries to spin the change as a positive one it’s unfortunately very poor for the majority of fliers who are often flying in discounted economy seats. The change rewards only those who spend the most on flights that aren’t necessarily the ones that need rewarding if they are going to fly BA anyway (e.g. companies that have contracts with BA.) If prices are similar customers are more likely to opt away from BA/Iberia, particularly when flying on a discounted economy ticket rather than choose them. But things in this loyalty game don’t always make sense…