Thursday, July 29

American Express is shaking up its British Airways Avios credit cards from September-here’s what it means for you


American Express (Amex) and British Airways (BA) have two co-branded credit cards-the British Airways Amex and the British Airways Premium Plus Amex. They allow customers to earn Avios points on their everyday spending, which can then be redeemed against plane tickets, hotel stays and more.

Both of these cards also let customers earn one so-called’companion ticket’ each year when they hit a certain spending threshold. With a companion ticket, you can get someone else a matching seat on a flight you’ve purchased with Avios and they only have to pay taxes and fees (though this can sometimes end up costing hundreds of pounds-see our full Avios guide for more info). But this perk is also being shaken up for some.

For the full lowdown on both cards and more ways to earn air miles when you spend, see our full Airline credit cards guide. Just bear in mind that with overseas travel still disrupted a cashback or reward credit card could be a safer way to earn perks on your everyday spending, and only spend what you would do anyway-don’t use reward cards as an excuse to overspend.

Amex is shaking up both of its British Airways credit cards

Here’s a summary of the changes that will affect both new and existing British Airways Amex cardholders from 1 September 2021:

  • Got or getting a British Airways American Express credit card? The spending threshold to earn a companion ticket is falling from £20,000/yr to £12,000/yr but it’ll be limited to economy class flights only. Your annual spending threshold starts from the date or the anniversary of when you took out the card. So if your year end is before 1 September 2021 it means you’ll still need to spend £20,000 to get the companion ticket. But if your year end is after 1 September 2021 it means you’ll need to spend £12,000.

    As long as you meet the £20,000 spending threshold pre-1 September 2021 you can get a companion flight on any type of flight from economy to first class (provided there are seats available)-even if the flight is after 1 September 2021. However , once the £12,000 spending threshold kicks in you can only redeem an economy class companion flight.

  • Got or getting a British Airways Premium Plus American Express credit card? The annual fee will increase from £195 to £250 but all other benefits remain the same or will be boosted. Unlike the British Airways Amex card above, companion vouchers earned with the British Airways Premium Plus Amex card will remain redeemable on any type of flight from economy to first class (provided there are seats available).

    From 1 September, you’ll also no longer be required to be redeem companion vouchers on flights departing from the UK only, giving added flexibility.

In addition, British Airways has doubled the number of seats available on flights departing from 28 July that can be booked with Avios, with the extra seats available to book now.

Weigh up whether the cards are still worth it from 1 September-you may be able to earn more Avios elsewhere

Make sure you weigh up the pros and cons of keeping your cards from 1 September. Both cards will remain among MoneySavingExpert.com’s airline credit card best buys even after 1 September (assuming no new players come to the market) but you may be able to earn more Avios from the American Express Gold and Nectar credit cards instead, which are also currently best buys.

We’ve compared all four cards in the table below where we’ve assumed an Avios value of 0.5p per mile, although the actual value of Avios varies depending on the flights you use them on. Typically, off-peak flights require fewer Avios to purchase than flights during peak times, so aim for cheaper periods if you can when you’ll need a typical 10% to 35% fewer points in economy.

However, if it’s not just the Avios you’re after then you also need to compare the value of added perks, such as companion flights and free airport lounge visits. Make sure you also take into account any card fees and if you’re unhappy about the increased fee on the Premium Plus card, for example, make sure you diarise to cancel your membership before your renewal date.

Also bear in mind that Amex isn’t as widely accepted as Mastercard or Visa, and you won’t get the introductory bonuses outlined below if you’ve had a personal (ie, not business) Amex in the past two years.





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