Maximise your Avios, air miles and hotel points

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.

Avios flights to Chile Santiago

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Santiago is better value than it should be, sitting in Zone 8 of the (unpublished) British Airways reward chart.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
Avios flights to Chile Santiago

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.

Avios flights to Chile Santiago

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.

Avios flights to Chile Santiago

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

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 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 card

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.

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.

Comments (59)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • SB says:

    I go the other way. Pay 214k and £800 (Avios and money) with 2-4-1 for BA First.

    It’s not the allure of the CCR, or particularly the seat or service on BA’s longest direct flight (I think?) at 14 hrs 45m, but the attraction of a smaller cabin, less used loo, and the utter joy of knowing when you get on the return flight in SCL, there’s no faffing about in Madrid and you’re straight home (outbound I could deal with).
    In my mind £13 per person per hour of flights seems acceptable, but totally understand the value in others horses for courses…

    • SammyJ says:

      Is First just £400 return each in tax to SCL these days? Or am I misunderstanding your £13 per hour calculation?

    • Yorkieflyer says:

      Only if you live near London of course! For us who live oop north may as well change in Madrid

    • Guernsey Globetrotter says:

      I can’t replicate anything like this price – F from LHR-SCL is nearly £800 in TFCs per person (and the Avios is higher too…). I’m not denying that the experience may be better than the other options discussed in the article but it definitely won’t be competitive on cost alone…

  • Gordon says:

    “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.”

    It would be pleasing if the taxes and fees from the uk were at a sensible level so there would not be a need to take these indirect routes.

    With the possible third runway at Heathrow and Gatwick’s proposed £2.2bn runway alteration plans, if these projects do indeed come to fruition, these costs would hopefully not be passed on to increase these charges even further, but I’m not holding my breath….

    • Dev says:

      Don’t bet your last penny on it… the chances of seeing any meaningful Airport expansion in the South-East before this generation dies is close to negliagiable.

  • Paul says:

    You should see what happens when you combine out bound BA in F with inbound on IB in J. BA should frankly be wearing masks it’s nothing short of extortion!
    And please can we stop talking about taxes. At most these account for £195 if you leave from London. There are some airport fees, the highest invariably being Heathrow but the vast bulk of the £600 or more is BA fees. These are normally 2.5 to 3 times the level of APD. If APD disappeared tomorrow the fees on Avios redemptions would still be higher from LHR than almost anywhere else outside of North America

    • Gordon says:

      pricing for F out and CW back is ludicrous because you are mixing standard F and CW. This is not new! You can sometimes get a decent price , but there’s leg work involved….

      • Nick says:

        Heathrow fees are £65ish for a peak longhaul now, aren’t they?

        And it’s a bit more nuanced than ‘high YQ is always bad’. YQ exists to clobber corporates (who only negotiate a fare, not YQ). It’s a happy coincidence (for BA!) that it has to apply either the same or nothing to redemptions – the latter wouldn’t be realistic without a huge increase in the Avios price, which would not go down well – and we’d be kidding ourselves if we thought BA would accept a reduction in corporate YQ without trying to get it back somewhere else. Comparisons with Iberia are limited in value as they have significantly fewer higher-Avios-earners than BA so need to be more attractive. The number of people flying indirect on separate bookings is always going to be limited, most will pay extra to avoid it.

        High YQ is actually a huge benefit to the Avios-rich because it means the rev man system will make more seats available – in some cases it’s basically the same revenue as an I class ticket, but with more flexibility as a benefit. This is a point often lost in the cloud of frustration over fees.

        Don’t get me wrong, the charges are annoying, but there’s more to it than ‘BA is out to get me’.

        • LittleNick says:

          I think they should at least give the options of redemptions without paying YQ so Avios + Actual Tax, then we can decide individually if it is actually worth it. But BA is a business answerable to IAG who are answerable to shareholders and it is designed to make as much profit as it can pure and simple.

  • Giampaolo says:

    I understand that using a British Airways American Express 2-4-1 voucher garantees a second seat in economy only, not in business class anymore..

    • Rhys says:

      Using the voucher doesn’t guarantee availability. You need 2 seats to be available in whichever cabin you are booking.
      Don’t forget that you can only use the voucher from the free card in economy now. Need the black card to redeem into business class.

      • LittleNick says:

        Wasn’t it the case at one time, using a 2-4-1 voucher only required one seat available and you could ‘force’ open a second seat? I seem to remember reading this years ago way before RFS kicked in?

  • r* says:

    Is there an easy way to find what availability there is on Iberia or is the only way to search for each date?

    Also, are the BA fees for HND-LHR supposed to be the same as LHR-HND if booked as a one way? Last time I booked that the fees there about £150ish iirc, now theyre nearer £500 (when using the old normal points pricing). Is this a casualty of the updated fee pricings?

    • meta says:

      Yep, I’m just waiting for Brazilian and Japanese governments to fine BA and make them abide by the law. BA are still calling it ‘taxes, fees and surcharges’, but in Brazil these are banned and in Japan there is a ceiling.

    • Stian says:

      I have the same question regarding IB availability. It’s not on SeatSpy.

    • Lyn says:

      You should be able to search a month at a time on the American Airlines web-site for award seats. I thought their calendar search had gone but it is still there and can be really useful. Best to search each leg at a time. You can specify non-stop and cabin. It seems to match BA availability fairly well and was accurate this morning for an Iberia short-haul route,

  • Bervios says:

    I use IB from MAD regularly on avios bookings. Tips that I can pass on :

    – Price the booking up on the Iberia website and the BA website, it’s often still cheaper on the IB website as taxes/charges aren’t always the same

    – On the way back to the UK , book your ticket as a connection e.g EZE-MAD-LHR so you are protected on one ticket (there is no APD so it proves up well)

    – Leave enough time , I had a friend who almost missed her EZE flight last week due to the ATC meltdown and hadn’t left enough time for an alternative.

  • Jayesh says:

    Does anyone know if you can use the Barclays upgrade voucher on Iberia flights from Madrid?

  • jannis says:

    too sad Barclay voucher only works on BA flight from UK

This article is closed to new comments. Feel free to ask your question in the HfP forums.

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