British Airways Avios: How Changes Will Affect the Way You Earn

British Airways recently announced that, from October 2023, the way you earn Avios through flying will change. Currently Avios miles are calculated based on distance flown. But going forward, Avios will be earned based on amount spent. In their words, this will “offer members a transparent, consistent and simplified way to collect Avios.” In this article I’ll explore whether that’s actually true. Or if this change could be worse for consumers?

What Has Changed?

The old method for earning Avios on British Airways flights was calculated based off the distance flown. Now though, they’ll be calculating the amount of Avios based on the amount you pay for the ticket. Your status with British Airways also played a large role in the number of Avios you would earn. It still will under the new cost based calculation, but to a lesser extent. I wrote a full article here explaining the British Airways Executive Club and how each tier works.

Below is the OLD way that Avios would be calculated:

Avios Earned as percentage of miles flown at each fare class:

  • Lowest = 25% of miles flown
  • Standard = 50% of miles flown
  • Flexible = 100% of miles flown

Bonus Avios Earned based on Executive Cluc Status:

  • Bronze = +25% bonus Avios
  • Silver = +50% bonus Avios
  • Gold = +100% bonus Avios

Meanwhile, this is the NEW way Avios will be calculated from October 2023 onwards:

  • Blue members: 6 Avios per £1 spent
  • Bronze members: 7 Avios per £1 spent
  • Silver members: 8 Avios per £1 spent
  • Gold members: 9 Avios per £1 spent

Graphic from britishairways.com

This means that flying Business or First Class could result in some truly astronomical points being earned. If you consider that a return flight in First Class from London to New York can cost well over £10,000, a Gold member could end up earning 90,000 Avios for one trip. Previously the maximum amount for the return flight would have been just 25,000 or so. Obviously that’s an extreme example though, and most of the time the difference will be much smaller.

How Will it Affect You?

One big change is that there’s actually less difference in how many miles you’ll earn between each tier. Gold members will now only earn 50% more Avios per £1 spent whilst previously Gold members would earn 100% more Avios on a given route.

However, one very obvious downside to this is that the change will hugely skew Avios earning in favour of high-spenders. The cynical part of me suspects British Airways expects this change to help bring in even greater revenue after already having a year of record profits. However, it is also true the many of BA’s competitors have already transitioned to this earning model, so it makes sense that BA would too.

Another key aspect of switching to a revenue based model is that it will encourage consumers to spend more on their flights. If you’re a business traveller, travelling on the company account, then it would be easy to just choose the most expensive option for maximum Avios. Likewise, regularly leisure travellers might look at the difference between a basic and standard fare (or any add ons like seats). Whilst they may not usually choose the standard fare, the slightly greater amount of Avios earned might be enough to persuade them.

A Few More Examples

The below example of a Business Class flight from London to New York is probably the best example of how the British Airways Avios change can benefit CERTAIN customers.

A long haul example from Britishairways.com

Another example would be the recent flight I took from Kuala Lumpur to London Heathrow via Hong Kong. I paid £501 for the one way ticket and earned 3,395 miles. But crucially, the fare for that flight was only £381 whilst surcharges were £220. Based off that £381 fare I would have only earned 2,286 Avios, which is much worse.

Economy tickets on the other hand won’t really change that much. Obviously on British Airway’s website they’ve chosen a positive example with a flight to Nice below. After a quick bit of research though, I found a return fare from London to Rome for £143. A blue member would earn 858 Avios under the new system. Whilst previously that same flight would have earned 898 Avios under the mileage based system. A marginal difference, but one that shows these changes aren’t always for the best.

A short haul example from Britishairways.com

Other Ways to Earn Avios

There are a few more lucrative ways to earn extra Avios which don’t involve flying. However, they are all based on spending money, so many of these options will really only be beneficial if you plan on spending a lot of money.

Credit Cards & Banks

Barclaycard actually offer 2 great Avios credit cards. First a free card which earns 1 Avios per £1 spent. Then the Avios Plus card which earns 1.5 Avios per £1 spent, but also has a £240 annual fee.

I own the free version of this card and am quite pleased with it. The earning potential isn’t that impressive but it does come with extra perks like cashback offers, balance transfers, and 5 months free for Apple TV.

Plus new customers will get 5,000 Avios after spending £1,000 in the first 3 months on the free card. And an impressive 25,000 Avios after spending £3,000 in the first 3 months on the Avios Plus card.

Avios Subscription or Buy Avios

British Airways also offer a monthly subscription service which lets you buy Avios directly. I wrote a full article here about the Avios Subscription here if you want help deciding whether it’s right for you. But bear in mind, the price has risen by about 20% since that article. Bottom line, it could be worth it in a few scenarios, however, most of the time you’ll barely break even. And given the upcoming changes to how you earn Avios through flights, who’s to say they don’t increase this subscription cost yet again?

Bottom Line

At it’s core, I think these changes to British Airways Avios are simply a way to encourage customers to spend more money. This is especially obvious given the fact that you earn Avios when purchasing extras (seat selection, baggage etc). Also, the cash value you earn Avios on doesn’t include taxes and surcharges, so if you’ve paid a low fare you’re likely to lose out from these changes.

All in all this change is mostly beneficial to high spenders who already have status. For the average flyer who chose the cheapest ticket and doesn’t have status, you’ll probably end up earning less Avios in the long run.

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