REMINDER: Last chance to lock in British Airways earnings under the old Avios earning scheme

We’re just under a week before British Airways follows its sister airline Iberia, and goes revenue-based earning.

And it’s still unclear as heck what happens next when you press book and ponder how many points you’ll earn.

Unless you’re paying top fares, you might find yourself earning not a lot. Not as long as this A350-1000 – Image, Economy Class and Beyond

The Current System

For tickets booked until the 18th of October, you will earn based on the classic formula – Fare Class multiplied by Distance, giving you your Avios, multiplied, with your elite bonus calculated at 25%, 50% or 100%.

The New System

If you haven’t read https://www.britishairways.com/en-gb/executive-club/faqs/collecting-avios-changes it might be an idea before you go much further

That changes to an unclear model based on:

• The base fare and any carrier-imposed charges
• Cabin upgrades
• Seats that you pre-book and pay for
• Additional bags

This is subject to a multiplier, depending on your Executive Club Membership status:

• Blue x 6
• Bronze x 7
• Silver x 8
• Gold/Gold Guest List x 9

You do not earn on Non-airline taxes and fees, such as airport charges and government taxes and fees or distance flown.

For those who had elite bonuses, you’ll be wincing, with it cut to

•  Bronze 15%
• Silver 30%
• Gold 50%

So what makes this hard?

How much of your airfare is a fare? It’s more complicated than you think. Let us take an example of London to Edinburgh (6th November)

Based on the above, Air Passenger Duty and Passenger Service Charge takes us to… £22.18. That means you’d only earn Avios on £38.50.  In terms of Avios, you’re coming out ahead based on a bare fare.

Let us go for a long-haul economy example – and yes, I’m picking on Economy Class for a reason. Let’s take the example of London to New York (return), in World Traveller, (Economy Standard).

£546 sounds like a reasonable amount that you’ll get more than a few Avios on. Except you’ll be earning on the fare (£126) and Carrier imposed charge (£220) – £346. The remaining £206 – you won’t earn an Avios (unless you paid with a branded credit card).  You’re coming out slightly ahead, depending on the fare, but you could well be losing out on elite bonuses.

If we jump to Club World, things improve – as you’re throwing money at the airline.

Again, you are earning against £6,512 – with you unable to earn against £304.61 – whilst a number, is much smaller in comparison to what you can earn against. Of course, your corporate accountant paying for it won’t care a lot, providing you showed the best value and haven’t put a clause in your contract to claw back the points. And you’ll be swimming in points.

And don’t forget American Airlines and Iberia are involved too

If you are thinking “I’ll switch to American Airlines and/or Iberia and credit to BA”, you’re hit too.

From 18 October 2023, flights marketed by American Airlines (AA) and Iberia (IB) will collect Avios based on total eligible spending. You will also collect Avios for eligible add-ons on flights marketed and operated by.

Whilst there is no mention of Finnair, as they move to a revenue-based Avios-based system, I wouldn’t hold your breath.

Exclusions?

For some tickets where the fare paid isn’t disclosed or isn’t available, including flights booked as part of a British Airways Holidays package, will continue collecting Avios based on a percentage of how many miles you fly and the cabin you fly in (no minimum Avios apply).

Amazingly, there are not as many carveouts as Iberia made to their programme.

Winners and Losers

If someone else is buying your full-price tickets, you are in gravy. And a lot of it.

Meanwhile, those on the discounted fares are going to feel this as their earning power drops – with the only way of making it up is to use the co-branded Credit Cards.

For everyone else, there may be some

The value of loyalty goes down, as well as down

I was trying to find a positive note to end this on. And as you’ve probably guessed, I can’t.

To me, it’s the ultimate reminder – the value of loyalty goes only ever in one direction – down. Airlines, Hotels, and Supermarkets want to get the data that loyalty points give but don’t want the liability of that cost to hit them that will hit them on the balance sheet.

And there’s a clear direction that British Airways wants to save a few pennies – as elite bonuses are cut hard and economy passengers will get a smile on a good day if they choose to fly British Airways Short Haul or on Economy Tickets.

At least they haven’t gone after Tier Points and qualification levels.

Yet.

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