Points and Miles

Iberia Avios deal – Madness or calculated risk?

Is the Iberia deal madness or well calculated?

9,000 Miles in advance for a $19 (now $40) flight sounds like madness to me, time will tell.

If you haven’t heard about it yet, Iberia are offering 9,000 Avios in advance for every flight booked before June 24th aka Sunday. Miles will expire on December 1st so bookings must be made before then. I have mentioned in advance twice already because you don’t need to actually have to fly the flights to get the miles, in theory!!!

But maybe they aren’t mad? Competition in Europe is as high as ever. If you search the cheaper routes on google flights, Ryanair will pop up with the cheapest flight on most occasions. (Route dependent) So maybe they are having a dig and see profit in it.

Let’s face it award flights are offered on flights where there are empty seats, cheap seats are offered on flights where there are empty seats. As soon as some of the more established bloggers jumped on this today Iberia guaranteed that tens of thousands of seats on empty planes will have been sold well in advance, even if no-one actually ends up flying.

I have on good advice Iberia are not in trouble, but they are certainly making some sort of margin call. Redeeming the “free Avios” out of the US will no doubt be difficult and Iberia will make a lot of upfront cash out of this. On the flip side they allow you fly inter-europe for 4,000 miles. So loyal Iberia flyers will hopefully do well out of this.

I fear award seat availability will disappear on any popular routes ahead of the Avios posting. I also hope the Avios will post before the points guy posted!!

Either way I’ve bet $100 before and I’ll do it again. Let’s see how this plays out…

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