Often times, the purchase of points can be of great value, especially when redeeming awards in First and Business Class, where redeeming miles is disproportionately good business.
For those who love buying miles, another airline has just launched a miles purchased promotion and this may be good business.
Iberia offers a 50% bonus on Avios purchased
Until Monday, March 1st, 2021, Iberia Plus is offering a bonus of up to 50% on Avios purchased.
With this promotion, you will receive a 50% bonus if you buy between 2,000 and 200,000 Avios in one transaction (200,000 is also the limit for the number of Avios you can buy in a calendar year before the bonus).
With Iberia Plus, the cost per Avios bought varies depending on how many you buy. Buy more and get a lower cost per Avios. A 50% bonus corresponds to the best offers from Iberia Plus for the purchase of Avios.
The trick to getting the best price on Avios
There is a trick to getting the best price when buying Iberia Avios – you want the purchase price to be in EUR rather than USD.
For example, if you buy 300,000 Avios (including the bonus) in USD, you will pay USD 5,523. If you bought 300,000 Avios in EUR, you pay € 3,601, which is ~ $ 4,343. That is a enormously Difference.
That said, you can buy Avios for just ~ 1.45 cents (USD) each.
How can you ensure that you will be charged in EUR instead of USD? All you have to do is make sure that you select the Spanish site, not the US site, at the top of the Iberia website (you can still use English as the language).
This shouldn’t break any rules as you are not claiming your account is registered there or anything, just using this website. It should work fine with a US credit card as well.
Personally, I value Avios at 1.3 cents each, although there are ways to achieve oversized value thanks to the distance-based premium table. I would say this could be a solid business.
Which credit card should you use to buy Avios?
Iberia point purchases are processed by points.com, which means that they are not considered to be a flight purchase for credit card issuance purposes.
So I would recommend using a card that you are trying to meet a minimum amount with or otherwise a credit card that will maximize your return on daily expenses.
Normally I would say the best cards for everyday expenses are those Chase Freedom Unlimited® (Review) or Citi® Double Cash Card (Review) but these have foreign transaction fees so I wouldn’t recommend using them if you are paying in EUR.
Hence, I would recommend using a card that offers a good return without foreign transaction fees, like the Bank of America Premium Rewards Card or the Capital One Venture Card.
You can transfer Iberia Avios to British Airways
While there are some good uses for Iberia Avios, you can also transfer Avios between British Airways and Iberia, provided you have both accounts open for at least 90 days and the accounts have some activity. So this might be a good opportunity to buy British Airways Avios at a discount too (just make sure you know the restrictions on transfers).
For more information on ideas for redeeming Avios, see this post.
Other great ways to earn Avios
I think Avios has a lot of value, but keep in mind that there are a few ways you can make Avios on US credit cards. Iberia Plus is a transfer partner of Amex Membership Rewards and Chase Ultimate Rewards.
In addition, there are three credit cards in the US that are used to earn Avios:
You can find a detailed comparison of the three cards here.
Iberia Plus offers a 50% bonus on Avios purchased that has the potential to represent a solid business. You could buy Avios for as little as 1.45 cents each, which is potentially attractive.
There are some unique uses for Iberia Avios, or you can alternatively transfer them to British Airways, provided you have both accounts open for at least 90 days.
Are you planning to buy Iberia Avios with a 50% bonus?
(Hat tip to YHBU)