Why booking a British Airways flight for less than $2 is not a good way to use your Avios
British Airways Club recently introduced a tempting new offer to reduce the price of any British Airways-operated flight to just 1 British pound (about $1.25) by using Avios, but here's why it is not a good deal.
BA has offered short-haul flights for just 1 pound round-trip using Avios (Reward Flight Saver) but has now extended this to all flights operated worldwide in any cabin.
Unlike fixed-price "Book with Avios" redemptions, which are limited in availability, the new 1-pound flights are a reduction of any BA-operated flight by applying Avios to reduce the cash price; it's sometimes referred to as "Avios part payment."
Related: British Airways Executive Club: Guide to Avios, elite status and transfer partners
"We've listened to our Members' feedback and we're really excited to be introducing this latest update for them," Colm Lacy, British Airways' chief commercial officer, said in a statement. "We know that most of our customers choose the lowest cash amount when it comes to making Reward Flight bookings, so we anticipate this to be a popular option for those using Avios part payment too."
Executive Club members will still collect Avios and tier points on any flights booked using cash and Avios. So, while it may seem like a good way to use your Avios and fly for free, unfortunately, it's not. Let's crunch the numbers.
The value of Avios part payment
Say you want to fly from San Francisco International Airport (SFO) to Heathrow Airport (LHR) this summer.
You can book nonstop flights with British Airways for $1,393 round-trip in standard economy, which includes checked baggage.
You could either pay this cash fare in full or choose to reduce the price with Avios.
I have almost 150,000 Avios in my account, which would not be enough to reduce the price to 1 pound, but I could redeem my entire Avios balance to take $794 off the price.
Redeeming 145,750 Avios to save $794 would give my Avios a value of about 0.0054 cents each, and I would still need to pay the remaining balance of $599.
This is well below TPG's current valuation of Avios at 1.4 cents each.
However, rather than booking a cash fare (which I could reduce the price of with Avios), I could search for an Avios redemption ("Book with Avios") and book the same flights for 60,000 Avios, plus 150 British pounds (about $188).
While I would not earn Avios or tier points for an Avios redemption, as I would for the cash fare, I would save myself 85,750 Avios and $411 with this option. Therefore, I would not have to redeem my entire Avios balance and would pay less cash out of pocket.
Compared with the $1,393 cash ticket (minus the $185 in fees, taxes and carrier charges), redeeming 60,000 Avios to save $1,208 would give my Avios a value of 2 cents each, above our current valuation of 1.4 cents.
If you look at a business-class flight to London on the popular New York-to-London corridor, I see cash fares in September are around $3,000 round-trip.
Redeeming 145,750 Avios would save $898, giving my Avios a value of about 0.6 cents each, and I would still need to pay more than $2,000 for the fare.
Alternatively, if searching for an Avios redemption rather than reducing a cash fare with Avios, I could book the same flights for 170,000 Avios plus 350 British pounds (about $439).
Comparing this to the cash fare of $3,000 and deducting the $439 in fees, taxes and carrier charges, redeeming 170,000 Avios this way would save me $2,561, giving my Avios a value of 1.4 cents each, right around our current valuation.
Related: British Airways' Club Suites don't disappoint: On board a retrofitted 777 from London to New York
Does it ever make sense to redeem Avios this way?
Using Avios to reduce the cash fare price will consistently give your Avios a redemption value of 0.5 to 0.6 cents each, which is not a great way to maximize your travel.
However, It could make sense for some Avios collectors to redeem their Avios in this way if they are sitting on large balances they may not otherwise use. In this case, look for:
- Sale fares where the cash price is already reasonable
- Peak dates on the British Airways Club calendar when Avios redemptions would be more expensive than off-peak dates
- Dates when "Book with Avios" seats are not available
- Connecting itineraries (British Airways charges Avios redemptions per sector, so the more flights you need to take, the more Avios you will need to pay)
For example, you could book a sale fare on a connecting itinerary from Chicago's O'Hare International Airport (ORD) to Dublin Airport (DUB) for $675 round-trip or book with Avios for 68,500 Avios plus 101 British pounds ($126). Neither option would give you more than 1 cent per Avios in value, so while just paying for a regular cash fare would probably be the best option, if you did have a large Avios balance and were wanting to earn tier points to earn elite status with British Airways, you could consider the Avios part-payment option.
How to earn British Airways Avios
The easiest way to boost your Avios balance is by applying for the British Airways Visa Signature® Card (see rates and fees). This card offers new applicants to earn 75,000 Avios after spending $5,000 on purchases within the first three months from account opening.
Remember that Avios can easily be transferred 1:1 between the different programs that use this currency, so if you're not interested in the British Airways Visa Signature Card, you can instead sign up for a different credit card that earns Avios, such as the Aer Lingus Visa Signature® Card or the Iberia Visa Signature® Card. Both offer the same low $95 annual fee, a generous earning rate, and a welcome bonus of 75,000 Avios after spending $5,000 on purchases in the first three months from account opening. These cards also earn a bonus of 3 Avios per dollar spent on purchases with Iberia, British Airways, Aer Lingus and Level and 2 Avios per dollar spent on hotels when purchased directly through the hotel.
The information for the Aer Lingus Visa Signature and Iberia Visa Signature has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
British Airways is also a transfer partner of Capital One, Chase Ultimate Rewards, American Express Membership Rewards, Bilt Rewards, Wells Fargo Rewards and Marriott Bonvoy, making Avios one of the easiest currencies to earn.
The following cards all currently offer strong welcome bonuses that you could convert to Avios:
- American Express® Gold Card: Find out your offer and see if you are eligible to earn as high as 100,000 Membership Rewards points after spending $6,000 on purchases within the first six months of card membership. Welcome offers vary and you may not be eligible for an offer.
- The Platinum Card® from American Express: Find out your offer and see if you are eligible to earn as high as 175,000 Membership Rewards points after you spend $8,000 on purchases within the first six months of card membership. Welcome offers vary and you may not be eligible for an offer.
- The Business Platinum Card® from American Express: Earn 200,000 bonus points after spending $20,000 on eligible purchases in the first three months of card membership.
- Capital One Venture Rewards Credit Card: Earn 75,000 bonus miles after spending $4,000 in the first three months from account opening.
- Capital One Venture X Rewards Credit Card: Earn 100,000 bonus miles once you spend $10,000 on purchases within the first six months from account opening.
- Chase Sapphire Preferred® Card (see rates and fees): Earn 75,000 bonus points after spending $5,000 on purchases in the first three months from account opening.
- Ink Business Preferred® Credit Card: Earn 90,000 bonus points after spending $8,000 on purchases in the first three months from account opening.
The information for the Ink Business Preferred has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Bottom line
The new option to pay less than $2 for any British Airways cash fare by using Avios may seem tempting, but you won't get more than 0.6 cents per Avios in value.
You will continue to be able to obtain far more value from your Avios by searching for the limited "Book with Avios" seats, particularly those on off-peak dates that are direct flights to or from London.
If you do have a large Avios balance you are struggling to use and are considering obtaining less than 1 cent per Avios in value, look for sale fares, connecting itineraries, peak dates or dates with no Book with Avios availability to get the best deal.
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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. |
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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
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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.