Iberia devalues American American Airlines award chart
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
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.
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.
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.
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.
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 photo by EQRoy/Shutterstock
Welcome to The Points Guy!
Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees