British Airways has announced a sharp increase to the cash component of its Avios reward tickets, with rises of up to 33 per cent due to take effect from May 27.
The airline informed loyalty scheme members of the changes in an email sent on Friday evening, giving customers just five days’ notice before the revised pricing structure comes into force.
Passengers hoping to redeem points at the current rates will need to complete bookings before the deadline.
In its message to members, British Airways thanked customers for their “continued support and understanding”.
The airline confirmed the number of Avios points required for reward flights will remain unchanged for now despite the higher cash charges.
The move represents another significant change to the value of the airline’s loyalty programme for frequent flyers who have built up points balances over several years.
A business class Club World seat from London Heathrow to New York JFK highlights the scale of the increases facing passengers using reward bookings.
The route still requires 176,000 Avios points, although travellers will now also need to pay £499 in cash alongside the points redemption.
British Airways raises Avios reward ticket cash charges by up to 33 per cent
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GETTYThat marks an increase of around £100, representing a rise of approximately 25 per cent on the previous cash charge.
The transatlantic route remains one of the most popular reward redemptions among British Airways Executive Club members.
For customers who have accumulated points through flights, credit card spending and retail partnerships, the increased cash contribution represents a further reduction in the value of their rewards.
Avios points can be earned through flights, hotel bookings, online shopping and everyday spending with partner retailers operating across travel, fashion and financial services.
The latest changes mark the second devaluation of the Avios programme within five months.
The latest increases in rising fuel costs is connected to the ongoing crisis in the Middle East
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Rob Burgess, founder of the Head for Points website, said the previous round of changes had already increased the number of Avios points required by 10 per cent while the cash element rose by between three and 23 per cent.
“This change only impacts the cash element and represents an additional 10 to 33 per cent,” he said.
“These changes are very likely to be linked to the increase in fuel costs due to the Middle East crisis, although British Airways has better hedging in place than most carriers,” he added.
He also warned there was little indication that oil markets would improve in the near future, meaning elevated fuel costs were likely to continue beyond the airline’s current hedging arrangements.
Simon Calder said the loyalty scheme had changed dramatically since it was first introduced by the airline.
“When British Airways first unveiled ‘Air Miles’, flights were genuinely free – no one was expected to hand over cash,” he said.
“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.”
The increases come after British Airways parent company International Airlines Group, which also owns Aer Lingus and Iberia, announced in April that it would raise standard ticket prices because of the conflict’s effect on fuel costs.
“Fuel prices have risen sharply, and, despite our hedging strategy, which gives some shorter-term mitigation, we are not immune to the impact,” the group said.