A few weekends ago I held one of my notorious subscribers-only meetups in Philadelphia, and a long-time reader mentioned that American Airlines was launching non-stop service from Philadelphia to Budapest. I more or less gave up on American years ago since their miles are so difficult to earn and their award availability is so terrible.
But I was at least willing to entertain the possibility that a oneworld route to Europe that avoided London might be a good use of Avios, since it might mean avoiding Heathrow's high surcharges on premium cabin award redemptions. So, I decided to check it out.
British Airways is not showing American award availability
The British Airways search engine is having one of its periodic fits, making it extraordinarily annoying to find American SAAver award space. One trick that worked for me on some searches (but not others) was to click back and forth between dates in your search results, which after 2-20 clicks sometimes makes American award space magically appear.
Iberia is showing American award availability
Fortunately, Iberia Plus is showing American award availability normally, and you can transfer British Airways Avios to Iberia Avios, and now you can even transfer Chase Ultimate Rewards points directly to Iberia Plus without using British Airways Avios as an intermediary.
Nonstop Iberia Plus awards cost the same number of Avios as nonstop British Airways awards (adding connections creates complications, and opportunities), but the cash component of award tickets can differ for reasons I don't yet fully understand.
On the flip side, Iberia requires you to book roundtrip itineraries, which neither American nor British Airways does.
Tax and surcharge roundup
With that out of the way, we can compare the value of American miles and Iberia Avios for roundtrip flights between Philadelphia and Europe that avoid London. All these flights cost 60,000 American miles roundtrip in economy and 115,000 American miles in business, so what I want to get at is what additional cost you pay booking using Iberia Avios, a currency that for most folks is much easier to earn than AAdvantage miles.
I searched for business class award availability between Philadelphia and every city in Europe served nonstop from there, avoiding American's close-in booking fee wherever possible, and plugged them into this spreadsheet. Where you see a mileage cost of 87,500 I was unable to find a single business class award seat in one direction and selected a mixed economy/business award instead. I was unable to make Iberia show Shannon itineraries at all.
I've helpfully color-coded the chart, but you can make a copy and sort it differently if you're so inclined. A few things immediately pop out of these numbers:
- There are still several sweet spots when redeeming Avios for business class to Europe, even after accounting for carrier surcharges. If you have a healthy balance of Avios or Ultimate Rewards points, you should prefer to redeem those for business class flights to Spain and Portugal, since the amount you'll save in transferred Ultimate Rewards more than makes up for the increased carrier surcharges, even if you just redeem your Ultimate Rewards for the cash to pay the associated fees.
- Paris is a good deal in business, and an even better deal in economy, costing just 42,000 Avios and $390 roundtrip, although if you're flying in economy you'll usually just want to book a paid fare, which can be as low as $579 on this route.
- The flip side is that some routes cost so much more in both Avios and cash that you should save your AAdvantage miles to redeem for those flights. Basically everything East of the Rhine is better booked with AAdvantage miles or another zone-based currency instead of distance-based Avios. Of course, a $2,000 roundtrip business class ticket to Europe isn't exactly "expensive," but the point here is to use the right currency for the job, and when booking award tickets to Rome Avios are definitely the wrong currency for the job!
I don't think you should hoard your American AAdvantage miles. Heaven knows I don't hoard them, which is why I only have about 15,000 in the bank. But you shouldn't hoard your Ultimate Rewards points either!
So if you do manage to find low-level American award space that works for you, it's probably worth at least popping over to the British Airways (if it ever starts working) or Iberia (if you're booking a roundtrip) websites to see if your itinerary happens to fall into one of their distance-and-surcharge sweet spots.