British Airways has confirmed a significant increase in the cost of its reward flights, directly attributing the move to measures outlined in Chancellor Rachel Reeves' recent Budget. The airline will implement the new pricing from December 15, 2025.
What's Changing with BA Reward Flights?
The carrier announced the changes yesterday, stating that both the Avios points and the cash components of reward fares will rise. A BA spokesman explained the decision was forced by a combination of increasing Air Passenger Duty (APD), third-party charges, shifting market conditions, and persistent inflation.
Any reward flights booked before the December 15 deadline will be honoured at the current, lower price. The airline emphasised it had given members advance notice to help them plan. "Our Reward Flight Saver flights continue to offer our members incredible value, but a combination of factors has left us with no choice but to increase our prices," the spokesman said.
Specific Examples of the Price Hikes
BA provided concrete examples to illustrate the impact on travellers:
- An off-peak economy return from London to New York will increase from 50,000 Avios points plus £100 to 55,000 points plus £120.
- An off-peak economy return from London to Geneva rises from 9,250 points and 50p to 10,000 points and £1.
- For the same Geneva route in business class, the cost jumps from 15,000 points and £12.50 to 16,500 points and £15.
The Budget and Air Passenger Duty Impact
The airline squarely pointed to the Budget announced on November 26, 2025, where Chancellor Rachel Reeves confirmed Air Passenger Duty would rise with inflation in 2027. APD is a UK departure tax levied on flights, with costs typically passed directly to passengers.
This represents a further increase, as APD is already scheduled to rise above inflation on April 1, 2026. According to reports, the upcoming changes could add around £2 to short-haul economy fares, with potential for higher increases depending on seating. "We didn’t pass on the last increase to our customers, so this has become even more challenging," BA stated.
The changes will apply universally across British Airways flights, meaning Avios-only reward seats will also see updated point requirements. In a communication to customers, BA added: "Price increases are a natural part of inflation across all industries and something we must reflect to maintain the business and be able to invest in our products and services."
