How to Use British Airways Miles: Post 9, Leveraging Miles and Cash Redemptions
Update: Some offers mentioned below are no longer available. View the current offers here.
This is the ninth installment of my series on maximizing British Airways miles. Since so many of you got in on the super-lucrative 100,000 mile BA Visa sign-up bonus (see details of the current 100K offer), it would be beneficial to check out: General tips, Post 1 – Booking BA Awards, Post 2 – Booking Partner Awards, Post 3 – Oneworld Alliance, Post 4 – Taxes and Fees, Post 5 – Household Accounts, Post 6 – Companion Ticket, Post 7 – Using ExpertFlyer for Partner Award Availability, Post 8 - The Art of the Stopover, Post 9 - Leveraging Miles and Cash Redemptions, and Post 10 - Using Qantas.com to Find Oneworld Award Availability. Also, be sure to look at my post on the credit card deal itself and the lengthy Q&A in the comments section.
One of the less advertised aspects of the British Airways Executive Club is the ability to use a mixture of miles and cash on award redemptions. While I normally ignore most attempts to "sell" me miles directly from the airline, this one can make sense for you depending on how you value a mile and what you redeem for. Without a promotion most airlines sell miles for about 3 cents each.
Let's take a look at this option with four New York - Rome itineraries on British Airways in coach, premium economy, business and first.
Economy options are:
60,000 miles and $525 or
48,000 miles $620 (pay $95 more to save 12,000 miles, .75 cent a mile) or
42,000 and $665 or (pay $140 more to save 28,000 miles, .75 cent a mile) or
39,000 and $690 (pay $165 more to save 21,000 miles, .78 cent a mile) or
36,000 and $715 (pay $190 more to save 24,000 miles, .79 cent a mile) or
30,000 and $760 (pay $235 more to save 30,000 miles, .78 cent a mile)
Summary: I'd buy BA miles at .78 cents all-day-long. Using cash and points is a fantastic deal.
Premium Economy options are:
90,000 miles and $525 or
72,000 miles $665 (pay $145 more to save 18,000 miles, .8 cent a mile) or
63,000 and $735 or (pay $210 more to save 27,000 miles, .78 cent a mile) or
58,500 and $770 (pay $245 more to save 31,500 miles, .78 cent a mile) or
54,000 and $805 (pay $280 more to save 36,000 miles, .79 cent a mile) or
45,000 and $880 (pay $355 more to save 45,000 miles, .78 cent a mile)
Summary: I'd buy BA miles at .78 cents all-day-long. Using cash and points is a fantastic deal.
Business class options are:
120,000 miles and $665 or
108,000 miles $935 (pay $270 more to save 12,000 miles, 2.3 cents a mile) or
90,000 and $1,340 or (pay $675 more to save 30,000 miles, 2.3 cents a mile)
Summary: Not such a hot deal. My guess is that BA knows they can sell business class (its often the hardest award to find), so they don't need to incentivize people more to redeem for it.
First class options are:
180,000 miles and $665 or
162,000 miles $935 (pay $270 more to save 18,000 miles, 1.5 cents a mile) or
135,000 and $1,340 or (pay $675 more to save 45,000 miles, 1.5 cents a mile)
Summary: Not amazing, but not terrible either. If you have the cash and redeem for first class, this is a no-brainer.
The great thing about cash and miles is that they work on partner awards as well (even the ones without fuel surcharges).
Domestic American Airlines Economy options are:
25,000 miles and $5 or
20,000 miles $70 (pay $65 more to save 5,000 miles, 1.3 cent a mile) or
17,500 and $100 or (pay $95 more to save 7,500 miles, 1.3 cent a mile) or
16,300 and $120 (pay $115 more to save 8,700 miles, 1.3 cent a mile) or
15,000 and $135 (pay $130 more to save 10,000 miles, 1.3 cent a mile) or
12,500 and $165 (pay $160 more to save 12,500 miles, 1.3 cent a mile)
Summary: A decent deal since taxes/fees are low to begin with.
AA South America First Class options are::
120,000 miles and $61 or
108,000 miles $356 (pay $295 more to save 18,000 miles, 1.6 cents a mile) or
90,000 and $791 or (pay $730 more to save 30,000 miles, 2.4 cents a mile)
However, some partners don't have the cash and points option, like this Cathay Pacific Chicago to Hong Kong in business class:
The point is that you shouldn't automatically dismiss the option to mix cash and miles on awards using BA miles. If anything, it allows the flexibility to achieve an award that you wouldn't have been able to achieve normally, so I personally like this option a lot. Feel free to share your thoughts on the valuations and whether you think this option is a good deal.
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- 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.
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- Annual Fee is $325.
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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. |
| 4X | 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. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
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.