Sebastian wrote yesterday about terrible way to use Singapore Airlines KrisFlyer miles (read more here).
A LoyaltyLobby reader dropped us a message about his search for Iberia flights between Barcelona – Madrid and what discount the airline had offered if paying using Avios.
You can access Iberia here.
Barcelona – Madrid
Iberia allows Iberia Plus members to use Avios instead of cash towards revenue fares. The price of the return flight is 550.79 euros (rather expensive for an hour long flight). Iberia would have allowed the member to use 96,895 Avios towards the flight and there still would have been a payment of 27.55 euros left.
This values Iberia Plus Avios exactly at 0.54 cents each (fraction of a cent). Iberia often sells its Avios at a discount, but even then the price of each unit is always more than a cent and not a fraction of it.
Airlines would love to move to dynamic pricing of awards and this would be the end result. Incredibly expensive awards.
Iberia Plus values their Avios at 0.54 euro cents each when used for paid fares. That is a rather low number.