Avios Rates for AA Domestic First Class Just Dropped 50%
Over the weekend, American Airlines made an adjustment to how it classifies its domestic first class. Starting January 11, the front seats on flights within the US are still going to be called "first class," but AA will now classify them using business-class fare codes (J, D, I and R) instead of first-class fare codes (F, A and P).
So what, right? Now that AAdvantage members earn miles based on the price of the ticket (and elite status) and there's no elite-qualifying mileage (EQM) benefit between business and first, this adjustment would seem to just be an irrelevant change. And, for the AAdvantage program, it is an irrelevant change. But, for British Airways' Executive Club program, this adjustment makes a significant difference.
Since American Airlines was treating domestic "first class" as first class, British Airways has been charging first-class rates for these flights. So, whether you were up front on an American Eagle Embraer RJ-175 or American Airlines' 777-300ER (pictured above), you were going to be charged the same number of Avios according to British Airways' distance-based chart. This meant that it was typically a poor redemption to use British Airways Avios for American Airlines domestic flights.
After this weekend's change, however, these same American Airlines first-class seats are now pricing at business-class Avios rates. Let's take a look at what this means. Here are the old and new rates for using Avios for domestic American Airlines flights. British Airways Off-Peak award prices are listed in parenthesis.
| Distance Band | Example Routes | British Airways Avios — old rate | British Airways Avios — new rate | AAdvantage award miles required** |
|---|---|---|---|---|
1-500 miles* | LAX-SFO, ORD-MSP | 30,000 (25,500) | 15,000 (12,750) | 15,000 |
501-650 miles* | ORD-ATL, ORD-DCA | 30,000 (25,500) | 15,000 (12,750) | 25,000 |
651-1,151 miles | JFK-ORD, MIA-JFK | 30,000 (25,500) | 15,000 (12,750) | 25,000 |
1,152-2,000 miles | ORD-LAX, DFW-LAX | 40,000 (34,000) | 20,000 (17,000) | 25,000 |
*While British Airways has a cheaper award tier for 1- to 650-mile flights, BA doesn't allow US domestic flights to book into this tier.
**Before factoring in possible discounts for reduced mileage awards and 10% mileage rebate.
As you can see, the old British Airways rates were up to double the AAdvantage rates. After this weekend's change, the Avios rates are the same as or cheaper than American Airlines rates across the board. But, remember that British Airways charges for each flight segment individually. If you're unable to get a nonstop flight, you're likely going to end up paying more to book the award flight with Avios than AAdvantage miles.
In case you're wondering why the chart only goes up to 2,000 miles, note that the fare codes weren't changed for transcontinental routes — such as JFK-LAX — that use three-cabin (first, business, economy) aircraft. Since these fare codes weren't realigned, there was no change to the Avios award prices for these routes.
Bottom Line
This seemingly unimportant American Airlines fare class realignment just made your British Airways Avios more valuable for flights on American Airlines. Whether Avios just slightly increased in value or nearly doubled is going to depend on your travel preferences and how many nonstop AA flights there are from your airport. If you're in a hub city and like to fly first class, this is great news.
If you're in a spoke city or fly economy, you're not going to benefit from this too much — unless you want to change it up and fly first class. After all, you can now pay 15,000 Avios for a first-class flight up to 1,151 miles vs. 12,500 AAdvantage miles for an economy flight over 500 miles.
Are you planning on redeeming any Avios thanks to this change?
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.