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Iberia devalues American American Airlines award chart

May 19, 2021
2 min read
Iberia Plane at Madrid Airport
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We predicted airline program devaluations would be coming as travel resumed. Now, there's another instance to report: As first reported by NerdWallet, Iberia's Avios program has quietly devalued its American Airlines award chart.

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In addition to increasing most award redemption rates, Iberia will be pricing out awards by segment rather than just distance.

Here's a quick look at what's changing:

Most awards will cost more and are priced out by segment

This goes without saying, but most awards will cost more under Iberia's new award chart for American Airlines. For example, the cost of round-trip business-class awards from the East Coast to Europe are increasing from 50,000 Avios each way to 62,000.

And, Iberia now prices awards by segment rather than total flight distance. That means if you're booking flights with a stopover, you'll redeem more Avios than if the flight were nonstop.

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One-way awards are allowed

On a positive note, Iberia now allows one-way award redemptions. This is great for those times when you either can't find award space both ways or don't have enough Avios in your account for a round-trip ticket. The added flexibility of one-way award bookings is a silver lining to an otherwise disappointing development.

Bottom line

This devaluation is bad news for travelers, but it's not entirely surprising. Europe is opening back up to American travelers and all those miles we've been buying, earning and hoarding over the last year are a liability for airlines. Given the opportunity, airlines will take advantage of increased demand (and high summer fares) to minimize the cost of these miles and increase revenue. Devaluations are the way to do that.

If you're sitting on any airline miles, I would recommend redeeming them as soon as possible. After all, we've already seen Delta, Southwest and Virgin Atlantic devalue their award charts. We're almost certain more are coming.

Featured image by (Photo by EQRoy/Shutterstock)
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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  • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
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Best card for premium perks while traveling
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards Rate

10XEarn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
5X5X miles on flights booked through Capital One Travel.
2X2 Miles per dollar on every purchase, every day
  • Intro Offer
    Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel

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  • Annual Fee

    $395
  • Recommended 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.

    740-850
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Why We Chose It

The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.

Pros

  • Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
  • Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
  • 10,000 bonus miles (worth $100 toward travel) each account anniversary.

Cons

  • The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
  • If you don’t travel frequently, this might not be the best card for you.
  • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
  • Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
  • Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
  • Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
  • Earn unlimited 2X miles on all other purchases
  • Unlimited complimentary access for you and two guests to 1,400+ lounges, including Capital One Lounges and our Partner Lounge Network
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
  • Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
  • Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023