British Airways is raising the cash component of reward tickets purchased with Avios, giving customers just five days' notice before the increases take effect. The airline informed loyalty scheme members via email, thanking them for their 'continued understanding' as prices rise by up to 33 per cent from Wednesday, 27 May.
Details of the Price Increase
For example, a Club World ticket from London Heathrow to New York JFK, which previously required 176,000 Avios plus a cash payment, will now demand £499—an increase of roughly £100, or about 25 per cent. The amount of Avios needed for bookings remains unchanged for now. Customers have until the end of Tuesday to secure tickets at current prices.
Industry Reaction
Rob Burgess, editor of the frequent-flyer website Head for Points, noted: 'This is the second devaluation in just five months. The earlier changes led to a 10 per cent increase in the Avios element and 3-23 per cent increase in the cash element. This change only impacts the cash element and represents an additional 10-33 per cent.' He linked the move to rising fuel costs amid the Middle East crisis, though British Airways has better hedging than most carriers.
Simon Calder, travel correspondent at The Independent, commented: 'When British Airways first unveiled Air Miles, flights were genuinely free—no one was expected to hand over cash. To see the cash element increased up to £500 will prove a deterrent for some. But many passengers, especially those who amass Avios on their company’s spend, remain transactionally loyal to BA.'
Broader Context
In April, IAG—which owns British Airways, Aer Lingus, and Iberia—announced it was increasing cash ticket prices due to the conflict's impact on fuel costs. The group stated: 'We are not seeing jet fuel supply interruptions, but fuel prices have risen sharply and, despite our hedging strategy which gives some shorter term mitigation, we are not immune to the impact. Like other carriers, IAG airlines are making some pricing adjustments to reflect these higher fuel costs.'
