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British Airways cuts taxes on one-way economy Avios flight redemptions FROM the US

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As we have covered on HFP in the past, the taxes on Avios redemptions from the United States to the UK are a lot higher than the taxes for a return flight from the UK to the US.

It isn’t clear why British Airways has chosen to add substantial extra surcharges to reward tickets issued in the USA which will be the case for any ticket starting there.  It is possibly to stop American Airlines frequent flyers using their AA miles to book BA reward seats (AA members tend to redeem only with AA transatlantic, as there are NO surcharges added to tickets).  It is also possible that it is done to offset the inflationary issuance of Avios – we have seen 100,000 Avios sign-up bonuses on US credit cards in the past.

Anyway …. there has been a shift.  In recent weeks, British Airways has sharply reduced the taxes on one-way ECONOMY Avios tickets which start in the US.

Here are the taxes for a one-way off-peak World Traveller / economy redemption from New York to London (click to enlarge) – £75:

and in World Traveller Plus (£203):

and in Club World (£504!):

and in FIRST (£664!):

As you can see, the tax on the World Traveller / economy ticket is now actually reasonable!  It is so low that it is potentially worth considering redeeming Avios rather than booking a cash ticket.

Now, I know that most HFP readers do not like redeeming in Economy.  I also know that virtually all flights from the US to the UK are overnight flights, which makes Economy even less bearable.

However ….. there are things to think about here.

Avios taxes on one-way flights from the US

Take New York.  There are two day flights from New York to London.  The 07.55 from JFK lands at 19.45, whilst the 10.25 from JFK lands at 22.10.

Economy for a relatively modest transatlantic flight during the day may be worth considering given the savings.  We’re comparing 13,000 Avios + £75 in taxes and charges (Economy one-way, US to UK) to 50,000 Avios + £504 in taxes and charges (Club World one-way, US to UK).  That is, however you cut it, a substantial difference.

I don’t normally recommend day flights from the US because you either ‘lose’ a day of sightseeing or, put another way, you are paying for another hotel night.  The sums above may change your mind though if you would be willing to fly back in Economy on a day flight.

Of course, you could argue that you could travel outwards on a day flight too, and make a substantial saving in both directions.  That is a very fair point.  I am just flagging this as another option to bear in mind, especially if you are low on Avios and can only afford Club World in one direction.

PS.  There are other ways of travelling to the USA whilst paying virtually nothing in taxes and charges.  The smart money redeems Avios on Iberia via Madrid (see this article) or on Aer Lingus via Dublin (see this article) where the return taxes and charges in Business will be around £175 and £75 respectively.  Paying £670 to British Airways in charges for a Club World return to New York is a bit nuts if you have the time to take a leisurely route.

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Comments (60)

  • david says:

    Surprised theres not many more of these “penis enlargement” or “get rich quick” click baits comments Rob. They are rife on other sites.

  • David says:

    US-UK-Europe has not been reduced. Bad news for me as a US expat living in Europe!

    Example:
    JFK-LHR: £53.50 in carrier fees
    JFK-LHR-TXL: £144.10 in carrier fees
    BA removed fuel surcharges from short haul flights a few years ago so LHR-TXL on its own has zero carrier fees. Which means they are playing games with the amount charged on JFK-LHR.