Don't panic: Iberia devalues some off-peak awards, still a great deal
Iberia has long offered excellent business class award pricing from the U.S. to Madrid (MAD) on off-peak dates. Travelers flying from the East Coast can book one-way tickets for just 34,000 Iberia Avios one-way, and flights from the West Coast are a great deal too.
Today Iberia raised the cost of award tickets to/from a handful of cities, including Chicago-O'Hare (ORD) and Los Angeles (LAX), effective immediately. Thankfully, the price increase isn't too bad and, frankly, they were a long time coming.
Let's take a closer look at this change and why it may not be so bad after all.
Iberia raises award prices from Chicago and LA
Iberia has a distance-based award chart where you pay more Avios for longer flights. Further, it offers lower pricing on off-peak dates. Here's a look at the award chart:
| Distance (miles) | Off-peak economy | Peak economy | Off-peak premium economy | Peak premium economy | Off-peak business class | Peak business class |
|---|---|---|---|---|---|---|
0 - 650 | 4,500 | 5,000 | - | - | 9,000 | 10,000 |
651 - 1,150 | 7,500 | 8,250 | - | - | 15,000 | 16,500 |
1,151 - 2,000 | 10,000 | 11,000 | - | - | 20,000 | 22,000 |
2,001 - 3,000 | 11,000 | 12,500 | - | - | 21,250 | 31,250 |
3,001 - 4,000 | 17,000 | 20,000 | 25,500 | 35,000 | 34,000 | 50,000 |
4,001 - 5,500 | 21,250 | 25,000 | 31,750 | 43,750 | 42,500 | 62,500 |
5,501 - 6,500 | 25,500 | 30,000 | 38,250 | 52,500 | 51,000 | 75,000 |
6,501 - 7,000 | 29,750 | 35,000 | 44,250 | 61,250 | 59,500 | 87,500 |
7,000+ | 42,500 | 50,000 | 63,750 | 87,500 | 85,000 | 125,000 |
The sweet spot is at the 3,001 to 4,000-mile level, which includes flights from New York-JFK and Boston (BOS) to Iberia's hub in Madrid (MAD). Until recently, this tier included Chicago-O'Hare (ORD) to Madrid, with off-peak business class awards pricing at 34,000 Avios one-way. This is despite the flight being 4,202 miles long.
Further, the airline priced flights from Los Angeles (LAX) to Madrid in the 4,001 to 5,000-mile tier, so business class cost just 42,500 miles one-way. In reality, the flight is 5,845 miles long.
That ended this week. The airline now prices one-way awards from Chicago to Madrid at 42,500 Avios, while Los Angeles departures will set you back 51,000 Avios. This no-notice pricing change was first reported by Inside Flyer and is reflected on Iberia's website.
Related: A review of Iberia’s business class on the A350, New York to Madrid
Inside Flyer notes that flights from some Central and South American cities have gone up in price too. For example, Mexico City (MEX) to Madrid used to cost 42,500 Avios in business class but moved to the 51,000 Avios tier. Lima (LIM) and Santiago (SCL) to Madrid also went up in price.
Thankfully, New York-JFK and Boston awards remain unchanged and can still be booked for 34,000 Avios one-way on off-peak dates.
Related: 6 best ways to redeem 100,000 Iberia Avios
My take on this devaluation
Unfortunately, Iberia devalued its off-peak business class sweet spot, but it's not surprising.
Iberia has undercharged for tickets from Chicago and Los Angeles for years. This devaluation simply corrects pricing on these routes, in line with its award chart. As Gary from View From The Wing said, the airline never requested additional miles from travelers who have taken advantage of this mispricing over the years.
Frankly, I'm surprised it took Iberia so long to correct pricing on these routes — especially the large pricing discrepancy from Los Angeles. These flights are still a great deal, even at the increased pricing. Redeeming 51,000 Avios for a business class flight from the West Coast to Spain is far lower than many loyalty programs require.
For example, booking the same tickets with American Airlines AAdvantage costs 57,500 miles regardless of where you depart from in North America. So, you still save 15,000 points by booking Chicago to Madrid with Iberia Avios instead of American miles.
Of course, I would've liked Iberia to give notice before making this change, but I find it hard to be mad, given this was seemingly a glitch on American's website.
Why did the airline choose to correct pricing now? It's hard to say, but I wouldn't be surprised if the airline sees a large influx of award bookings after news broke that the EU will start allowing U.S. tourists this summer.
Airlines are still recovering from the pandemic and need ways to reduce liabilities where they can. This is a small way for Iberia to do that, and I much prefer a small pricing correction to a full-blown no-notice devaluation.
Related: The cheapest ways to book a trip to Spain with points and miles
Bottom line
Off-peak Iberia awards from Chicago and Los Angeles now require more Avios but remain cheaper than programs like AAdvantage. Thankfully, flights from the East Coast continue to require just 34,000 Avios in business class Ultimately, this evaluation is a correction of a pricing error and the devalued routes are still a great deal.
If you want to book one of these Iberia awards, they remain accessible. Simply transfer American Express Membership Rewards or Chase Ultimate Rewards points to give you Iberia Avios balance a boost.
Feature photo by yllyso / Shutterstock.com
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- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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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
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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.