Redeem Avios on Iberia’s new San Francisco route – when they fix the taxes
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Iberia, BA’s sister airline, has announced a new route between Madrid and San Francisco for Summer 2018.
This is an opportunity to redeem Avios on a route where it can be tricky to find seats, and where you will often need fewer Avios and pay lower taxes than if you flew from London on British Airways.
Here are the details:
Flights launch on 25th April and end on 28th September
Flights depart on Mondays, Wednesdays and Fridays
Iberia’s business class is good ….
A couple of weeks ago I reviewed Iberia’s long-haul business class seat, albeit on the short hop from London to Madrid. Iberia occasionally runs a long-haul plane on this route for cargo reasons.
My review of Iberia business class is here.
Suffice it to say that the 1-2-1 seating, all with direct aisle access, is very impressive and far better than British Airways Club World.
Of course, you need to get yourself to Madrid to connect. However, if you live outside London this is no more difficult than connecting in Heathrow for the British Airways service. The only snag is the 12.25 departure time from Madrid which may make it a tight connection unless you want to stay in Spain the night before.
Redeeming Avios for San Francisco
Business class redemptions on Iberia to the US are better value, off peak, than redemptions on British Airways.
New York is the prime example of this. Off peak – and Iberia’s off-peak dates are here (click), they are different to BA’s off-peak dates – Madrid to New York in Business Class is only 68,000 Avios return!
San Francisco is not that cheap, but it is good value.
Off peak, an Avios redemption is 102,000 Avios plus £370 of taxes and charges.
On peak dates, you will pay 150,000 Avios plus £370 of taxes and charges.
This compares with 125,000 Avios off-peak and 150,000 Avios peak, plus £574 of taxes, with BA from London.
You must book your connecting flight between the UK and Madrid separately. Adding it to your Iberia booking will cause the taxes to shoot up as you will be paying long-haul premium class UK Air Passenger Duty.
Something weird is happening with taxes
Historically, Iberia redemptions were substantially cheaper – in terms of taxes and charges – when booked at iberia.com using Iberia Plus Avios.
This is not the case here.
Whether you book via the Iberia site or the British Airways site, the taxes are identical – £369.
This is not normal. For example, I checked the taxes on Iberia’s Madrid to New York route and they came out at €179 return, in business class, when booked at iberia.com. The identical flight, booked on ba.com, was £369.
I would have expected the taxes on Iberia San Francisco flight to be similar to New York, at around £150 – £175. £369 is high.
So …. it is possible that either:
Iberia has made a mistake and is charging too much in taxes on its own website, or
This is a new strategy, equalising taxes across the Iberia and BA websites, and we will see all other routes brought in line
We can only wait to see which it is.
Business Class Avios redemptions seem to be limited to one seat on most dates although I did see two here and there. More seats may open up when Iberia gets a feel for how the flights are selling.
Conclusion
This new Iberia route offers a good way to get to San Francisco in a good quality business class seat for fewer Avios and lower taxes than flying British Airways.
Although, of course, you need to get to Madrid first.
The taxes currently being charged on the Iberia website appear to be wrong and will hopefully drop even further, to the expected £175 or so.
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How to earn Avios from UK credit cards (April 2025)
As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!
In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.
You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus Mastercard
Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review

Barclaycard Avios Mastercard
Get 5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review
There are two official British Airways American Express cards with attractive sign-up bonuses:

British Airways American Express Premium Plus
30,000 Avios and the famous annual 2-4-1 voucher Read our full review

British Airways American Express
5,000 Avios for signing up and an Economy 2-4-1 voucher for spending £15,000 Read our full review
You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points. These points convert at 1:1 into Avios.
SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on the ‘free for a year’ American Express Preferred Rewards Gold card is increased from 20,000 Membership Rewards points to 30,000 points. Points convert 1:1 into Avios (30,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.
SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on American Express Platinum is increased from 50,000 Membership Rewards points to a huge 80,000 points. Points convert 1:1 into Avios (80,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.

American Express Preferred Rewards Gold
Your best beginner’s card – 30,000 points, FREE for a year & four airport lounge passes Read our full review

The Platinum Card from American Express
80,000 bonus points and great travel benefits – for a large fee Read our full review
Run your own business?
We recommend Capital on Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, and the standard card is FREE. Capital on Tap cards also have no FX fees.

Capital on Tap Visa
NO annual fee, NO FX fees and points worth 1 Avios per £1 Read our full review

Capital on Tap Pro Visa
10,500 points (=10,500 Avios) plus good benefits Read our full review
There is also a British Airways American Express card for small businesses:

British Airways American Express Accelerating Business
30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review
There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.

American Express Business Platinum
50,000 points when you sign-up and an annual £200 Amex Travel credit Read our full review

American Express Business Gold
20,000 points sign-up bonus and FREE for a year Read our full review
Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.
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