Iberia devalues American American Airlines award chart

May 19, 2021

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.

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 photo by EQRoy/Shutterstock

Chase Sapphire Preferred® Card

WELCOME OFFER: 100,000 Points

TPG'S BONUS VALUATION*: $2,000

CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

Apply Now
More Things to Know
  • Our best offer ever! Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®.
  • Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 100,000 points are worth $1,250 toward travel.
  • With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
  • Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.
Regular APR
15.99%-22.99% Variable
Annual Fee
$95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent/Good

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.