Iberia Plus and British Airways Executive Club will make the switch to a revenue-based Avios earnings scheme, following the Big Three U.S. carriers' example.
According to Head of Points, British Airways will switch to revenue-based earning in 2023 while Iberia makes the switch on November 1.
Prior to this, Iberia and British Airways' frequent flyer customers received Avios based on the distance they traveled rather than their expenditures.
Here is how the move impacts Iberia passengers and how it might impact British Airways passengers in the upcoming year.
Updated accruals for Iberia Plus
Iberia members will begin earning Avios on flights as of tomorrow, Nov. 1, 2022, in the following ways:
• Clasica: 5 Avios for every euro spent.
• Plata: 6 Avios for every euro spent.
• Oro: 7 Avios for every euro spent.
• Platino, Infinita, and Infinito Prime: 8 Avios for every euro spent.
But you'll only make money off of your net purchases, not including taxes or other expenses.
Also keep in mind that taxes and fees can account for a sizable amount of your fare.
To be clear, Iberia is not currently changing the process by which its members achieve status.
Customers' earned redeemable Avios will be the only thing to which the revenue-based accruals will be applied.
Silvia Morán, the director of Iberia Loyalty, stated in a press release:
We believe that this strategy, which they have been asking for some time and which is also more in line with other industry loyalty programs, is a more equitable and transparent way to reward our more devoted members.
Members of Iberia will now receive Avios for spending money on ancillary fees like additional baggage and seat preference.
These extra services do not currently qualify for Avios rewards.
What will happen to British Airways?
Although British Airways has not yet disclosed the details of the changes to Executive Club Avios accruals, the airline has stated that it will follow Iberia's example.
British Airways' Ian Romanis, Head of Retail and Customer Relationship Management, issued the following statement:
"We commend our Iberia colleagues for implementing this change and look forward to joining them in 2023.
We'll make further announcements in the future about the impact this move will have on our Executive Club programme, which will provide our members even more chances to earn Avios when they fly.
How many Avios British Airways customers will earn in relation to their flight expenses is unknown at this time.
When we have additional information, we'll write a follow-up article.
In conclusion
By switching to revenue-based accruals, Iberia Plus and British Airways will reward high spenders instead of frequent flyers.
An accrual approach for Avios based on revenue is already used by Aer Lingus AerClub.
Once British Airways makes the adjustment, Qatar Airways Privilege Club will be the only Avios airline still enabling members to accrue miles based on their flight distance.
Iberia will make the switch for all flights beginning on or after November 1, 2022, while British Airways will do the same sometime in 2023.
The news will probably only be welcomed by high spenders, despite the positive framing used by both airlines for this adjustment.
Iberia's decision to alter its earning methodology just one day after introducing it is problematic since some travelers have probably already made plans to travel in the future under the assumption that they will be rewarded with miles for distance traveled.
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