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:

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.

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:

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.

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.

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