How Santiago shows up the oddities of Avios reward pricing – with taxes from £59 to £600
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Avios reward pricing is all over the place. It is complex enough when just looking at British Airways flights and the various combinations of cash and points, but when you factor in Iberia and partner airlines it gets even crazier.
I thought that Santiago in Chile was a good example because it is served by British Airways, Iberia and LATAM. I’ve not looked at options with Qatar Airways because it is a bit of a diversion to go via Doha given the alternatives.
Even if you DON’T want to go to Chile, keep reading because the same principles apply to other Iberia routes.
Option 1: Fly British Airways direct from London to Santiago
Santiago is better value than it should be, sitting in Zone 8 of the (unpublished) British Airways reward chart. The flight is 7,228 miles and it should technically be in Zone 9 and priced the same as Sydney!
I have selected the ‘most Avios, least cash’ option as this is the best for someone using a British Airways American Express 2-4-1 voucher – everyone else may find another combination better value:
- 220,000 Avios + £600 off-peak (see screenshot below)
- 240,000 Avios + £600 peak
Option 2: Fly Iberia direct from Madrid to Santiago, booked on ba.com or iberia.com
Even though you should book this flight on ba.com, to make cancellation easier if necessary, it still prices off the Iberia Avios reward chart because it is an Iberia flight. Santiago is in Zone 7 of the Iberia Avios reward chart. Iberia is also being generous here, because the flight is 6,649 miles and it should technically be in Zone 8.
You pay (again, I take the ‘most Avios’ version which is best for someone using a 2-4-1 voucher):
- 102,000 Avios + £195 off-peak (see screenshot below)
- 150,000 Avios + £195 peak
You also need to add in the cost of getting to/from Madrid on a separate ticket. You make substantial savings (£150ish) on Air Passenger Duty by taking a separate economy flight to Spain.
The total savings, as you can see, are ludicrous when flying on Iberia.
TWO people could fly Business Class, from Madrid to Santiago, using a British Airways American Express companion voucher for just 102,000 Avios + £389 return off-peak.
Option 3: Fly LATAM direct from Madrid to Santiago, booked on ba.com
Finally, here is an option with a partner airline. LATAM is no longer a member of the oneworld alliance but retains codeshare and frequent flyer partnerships with British Airways and Iberia.
This is what you pay to fly with LATAM. Remember that, as a partner airline, all dates are priced as peak dates:
- 185,500 Avios + £59 (see screenshot below)
You also need to add in the cost of getting to/from Madrid on a separate ticket.
Do not book this ticket on the Iberia website because partner airline redemptions booked via Iberia Plus cannot be cancelled. Book via ba.com and you can cancel for a full refund for the usual £35 fee.
Which option is best?
As I said earlier, this article isn’t really about Santiago. It is more about highlighting the huge differences in taxes and charges if you can fly with Iberia or a partner airline.
In this particular example, it is a no-brainer to take Iberia via Madrid. Whilst LATAM has lower taxes, the additional Avios required means that it isn’t the best value overall. This is especially true if you have a British Airways American Express 2-4-1 companion voucher for Iberia.
British Airways is terrible value on this route. However much you may prefer a direct flight from London, the lure (assuming two travellers with a 2-4-1 voucher) of paying 102,000 Avios + £390 between you from Madrid vs 220,000 Avios + £1,200 from London is probably too strong to resist.
In fact, the Iberia option is so cheap that I’d be tempted to keep my 2-4-1 voucher for another day and pay the full price for two people of 204,000 Avios + £390 ….
How to earn Avios from UK credit cards (December 2024)
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 14th January 2025, the sign-up bonus on ‘free for a year’ American Express Preferred Rewards Gold is increased to 30,000 Membership Rewards points. This converts into 30,000 Avios. Click here to apply.
SPECIAL OFFER: Until 14th January 2025, the sign-up bonus on The Platinum Card from American Express is increased to 80,000 Membership Rewards points. This converts into 80,000 Avios! The spend requirement is changed to £10,000 in six months for this offer. 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
Huge 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, along with a sign-up bonus worth 10,500 Avios.
Capital on Tap Business Rewards Visa
10,500 points (=10,500 Avios) and NO FX fees 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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