Mystery devaluation: British Airways will increase the cost of Avios redemptions Dec. 15

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The British Airways Club program has announced that it will increase the cost of Avios redemptions starting Dec. 15 — but we don't know which ones or by how much.

To the program's credit, British Airways Club has kept most Avios redemption amounts stable for several years (other than increasing short-haul domestic flights operated by American Airlines and Alaska Airlines several times).

The program is notorious for large carrier-imposed surcharges on British Airways-operated flights. Although, three years ago it introduced the option to redeem more Avios in exchange for fewer taxes, fees and surcharges (called "Reward Flight Savers") for flights operated by British Airways; this allowed travelers to fly to London for just $50 plus Avios.

Here's what limited information we know and what you should do now.

British Airways Club program to increase redemption rates

The program will increase the cost of Avios redemptions for new bookings made from Dec. 15, onward.

The program's website explaining the changes first states that the prices will increase "on all British Airways flights and airline partners." However, in the price change FAQ section, the website states that changes apply to "all British Airways operated flights, to all destinations," with no reference to partner-operated flights.

British Airways explains that both Avios and the taxes, fees and surcharges required will increase due to inflation, market pressures and increases to the U.K. Air Passenger Duty. We don't know if this will just impact Reward Flight Savers operated by British Airways (where the taxes, fees and surcharges are very reasonable) or all redemptions on all airlines.

This could also mean that the surcharges levied by other programs — such as American Airlines' AAdvantage on British Airways-operated flights — may also increase.

While it's appreciated that British Airways has given members several days' notice of the changes to lock in redemptions at the existing rates, the program has provided just one long-haul example of the price increase. That example is a round-trip flight from London to New York City:

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• Economy off-peak: 50,000 Avios plus $200 increases to 55,000 Avios plus $240
• Economy peak: 60,000 Avios plus $200 increases to 66,000 Avios plus $240
• Premium economy off-peak: 85,000 Avios plus $610 increases to 93,500 Avios plus $680
• Premium economy peak: 120,000 Avios plus $610 increases to 132,000 Avios plus $680
• Business class off-peak: 160,000 Avios plus $750 increases to 198,000 Avios plus $820
• Business class peak: 180,000 Avios plus $750 increases to 198,000 Avios plus $820
• First class off-peak: 136,000 Avios plus taxes, fees, and charges increases to 150,000 Avios plus taxes, fees and charges
• First class peak: 160,000 Avios plus taxes, fees and charges increases to 176,000 Avios plus taxes, fees and charges

While it may seem odd that the first class Avios rates are lower than business class, this is because the "lower cash" Reward Flight Savers are not available in first class. So, the taxes, fees and surcharges are much higher — expect around $1,300 round-trip per person.

What makes this announcement so confusing to members is that:

• British Airways has only provided the new prices on one of its 28 U.S. routes.
• The price increases provided are only for round-trip flights starting from London. British Airways charges different taxes, fees, and surcharges for round-trip flights in the U.S. (Currently, those fees are $159 in economy, $465 in premium economy, and $530 in business class, round-trip from New York City to London.)
• British Airways currently prices flights across the Atlantic into two bands: Flights 3,001 to 4,000 miles in length, like those from New York City, are in one band. Flights 4,001 to 5,500 in length, like those from the U.S. West Coast to London, are priced in a higher band. We don't know what the price increase will be for the higher band, or whether all destinations in that band will see the same changes.
• Flights on similar routes operated by partner carriers, such as American Airlines, may experience price increases or remain unchanged.

TPG contacted British Airways, asking for confirmation on all of these unknowns, and the airline said they had no further information to provide at this time.

Bottom line

Although devaluations are an unfortunate reality of earning and redeeming points and miles, this could be worse. For starters, the program is providing members with almost two weeks' notice of the changes, allowing them to redeem any planned travel at the existing rates. Additionally, the price increases are likely to be around 10-15% in terms of Avios prices and the cash copayment of taxes, fees and surcharges required; this represents a mild increase.

It's perplexing that the program is giving notice yet not disclosing the new prices on almost all routes to members until they go live Dec. 15. This makes it impossible to know what the increases will be, especially as Avios, taxes, fees and surcharges are all increasing. We also don't know if the increases will apply only to British Airways-operated redemptions or to those operated by partner airlines as well, due to the conflicting information in the announcement communications.

To be safe, it's a good idea to book any Avios redemptions through British Airways Club on any carrier before Dec. 15.

Related reading:

• Great award availability but beware the taxes: British Airways business class review
• British Airways announces several tweaks ahead of its switch to a revenue-based system for earning elite status
• How to easily transfer Avios between all 7 airline loyalty programs
• British Airways reveals revamped short-haul seats and new transatlantic first-class timeline
• Airlines you can book using Avios: How to maximize your points and miles