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Travel on Point(s) is an independent, advertising-supported website. This site is part of an affiliate sales network and receives compensation for sending traffic to partner sites like Creditcards.com and Bankrate.com. This compensation does not impact how or where products appear on this site. Travel on Point(s) has not reviewed all available credit card offers on this site. Reviews, analyses & recommendations are the author’s alone and have not been reviewed, endorsed, or approved by any partner entities.

British Airways Devalues American and Alaska Awards Again

To celebrate the Fourth of July, British Airways devalued Avios redemptions for American and Alaska flights without notice. This marks the second time British Airways devalued these redemptions in less than a year (the last one was in December 2023). The last devaluation wasn't great, but this one pretty much kills any use for redeeming BA Avios on American or Alaska. Let's dive into the details as British Airways devalues American and Alaska awards…again.

RELATED: Book American Airlines flights cheaply with Alaska Airlines

British Airways Devaluation

British Airways had always been the easiest airline for short-haul redemptions on Oneworld partner airlines, offering excellent value. There was still decent value in redeeming Avios for flights on American or Alaska after the December 2023 devaluation. But this is no longer the case.

Here are the new rates for redeeming British Airways Avios on American or Alaska:

ZoneFlight distanceEconomy – oldEconomy – newBusiness – oldBusiness – new
11 – 650 miles8,25012,00016,50024,000
2651 – 1,150 miles11,00016,00020,50032,000
31,151 – 2,000 miles14,50018,00029,00040,000
42,001 – 3,000 miles16,00020,00042,00050,000

We're looking at increases of anywhere between 19% and over 56% depending on the flight distance and class of service. The last devaluation had been worse for business class redemptions. But this time around, BA didn't discriminate in casting a wide net.

British Airways Devalues American and Alaska Awards Again

As if this devaluation alone wasn't bad enough, the fact that British Airways is doing it just seven months after its last no-notice devaluation makes it hurt even more. To put things into perspective, let's look at how much redemptions for American or Alaska flights cost before December 2023:

ZoneFlight distanceEconomyBusiness
11 – 650 miles7,50012,500
2651 – 1,150 miles9,00016,500
31,151 – 2,000 miles11,50022,000
42,001 – 3,000 miles13,00038,750

These numbers are shocking. In less than a year, we're looking at a 92% increase for business class flights at or below 650 miles. Or a 78% increase for economy flights between 651 and 1,150 miles.

BA does offer a lot of transfer bonuses through partners, but the usual transfer bonus still isn't enough to make these new rates useful.

Other Avios Options for Booking American & Alaska

While British Airways has long been the standard for booking American Airlines flights, that title was already slipping after last year's devaluation. We've expressed our love of Alaska Airlines' new award charts, especially for short-haul AS and AA flights and Qantas is a favorite of many, but neither of these programs are as easy to acquire as Avios. Unfortunately, it appears this devaluation has already spread to Iberia Airlines, which is part of the Avios currency. Iberia Airlines has matched British Airways' award chart and, for example, a 919 mile flight from Washington, D.C. to Miami is 16,000 Avios and taxes under the new program. Remember: this same flight was only 9,000 Avios pre-December 2023.

British Airways Devalues American and Alaska Awards Again

So where does that leave us? Two additional Avios programs have not devalued…yet. First, Qatar Airways continues to have pricing similar to British Airways and Iberia pre-December 2023. The exact same flight as above (D.C. to Miami on 7/25/24) is 9,000 Avios and taxes. This is definitely good news.

British Airways Devalues American and Alaska Awards Again
Qatar Airways cost for D.C. to Miami flight on American Airlines

Similarly, we see no changes with the newest Avios partner, Finnair. Although you're required to call in and book American Airlines flights, the above itinerary remains only 11,000 Avios and taxes. For now, you can take advantage of a transfer bonus (or transfer opportunity) to any Avios program and then send your Avios to either Qatar Airways or Finnair for cheaper bookings.

British Airways Devalues American and Alaska Awards Again: ToP Thoughts

British Airways effectively killed any value for redeeming its Avios for flights with American or Alaska. With a second no-notice devaluation in just seven months, redemptions costs have skyrocketed. Doing this around the Fourth of July is just cruel and gives off 1812 vibes. Going forward, I expect Finnair's, Qatar Airways' and Qantas' loyalty programs to experience a spike in activity from US travelers, not to mention American and Alaska's own programs…

HT: OMAAT

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