Avios and Airline Miles Credit Cards: How They Work in the UK
Airline credit cards let you collect points, such as Avios (used by British Airways and some other airlines) or Virgin Points, every time you spend. Some also offer perks like a companion voucher. For the right person they can be great value. For others, the fees and interest outweigh the rewards.
Key takeaways
- You earn airline points on everyday spending, often with a sign-up bonus for meeting a spending target.
- Some cards offer a companion voucher after a set level of spending. Terms and taxes/charges vary.
- Many of the most generous cards charge an annual or monthly fee.
- Points only make sense if you pay in full every month and will actually use them.
- Check foreign transaction fees separately. A miles card isn't always a fee-free travel card.
This is general information, not financial advice.
How do airline miles credit cards work?
There are two main types:
Co-branded airline cards
Linked directly to one airline's scheme. Points go straight into your frequent flyer account. These cards often include airline-specific perks such as companion vouchers or upgrade vouchers.
Flexible rewards cards
Earn the card provider's own points, which you can transfer to one or more airline or hotel schemes, or use in other ways. More flexible, but the transfer rate can vary.
What you can earn
Cards typically offer:
- points per pound spent on eligible purchases
- a welcome bonus if you spend a certain amount within the first few months
- extra points when you spend directly with the airline
- for some cards, a companion voucher or similar reward once you hit an annual spending threshold.
Exact earning rates, thresholds and bonuses change often. Check the card's current terms, and compare them side by side on Rewards & travel credit cards.
Companion vouchers: read the small print
A companion voucher usually lets a second person travel with you on a reward flight for fewer points. It can be valuable, but:
- you usually still pay taxes, fees and carrier charges, which can be significant on long-haul flights
- reward seat availability can be limited, especially in school holidays
- vouchers have an expiry date and conditions on which flights qualify
- the spending threshold is normally measured over your card year.
Annual fees: are they worth it?
Many premium airline cards charge a fee. To decide:
- Estimate the points you'll earn in a year from your normal spending.
- Add the value of any perk you will genuinely use, such as a companion voucher.
- Subtract the fee.
- Compare with a fee-free airline card, or a cashback card (see Cashback Credit Cards Explained: Are They Worth It?).
Remember that the fee is included in the APR, which is why fee-paying reward cards can show high APRs. See APR vs Representative APR: What Credit Card Rates Really Mean.
How much is a point worth?
There's no fixed value. It depends on how you redeem. Points used towards long-haul premium cabin reward seats are often seen as better value than points used for shopping or low-value redemptions. If you're unlikely to fly, a points card may be worth less to you than straightforward cashback.
Things to watch
- Interest. If you carry a balance, interest will almost certainly outweigh any points you earn.
- Foreign transaction fees. Many airline cards still charge a fee on non-sterling spending. See Using a Credit Card Abroad: Fees, Exchange Rates and How to Save.
- Card acceptance. Some rewards cards use networks not accepted everywhere. Carry a backup Visa or Mastercard.
- Point expiry. Check the scheme's rules. British Airways, for example, says Avios expire only if your balance is inactive for three years.
- Overspending. Spending more to reach a bonus threshold can cost more than the reward is worth.
Protection when booking flights
Paying for flights or holidays over £100 by credit card gives you Section 75 protection, including if the airline goes bust. Be aware that booking through some third-party agents can affect this. See Section 75 Explained: Your Credit Card Purchase Protection.
Is an airline credit card right for you?
It may suit you if you:
- pay your card off in full every month
- spend a reasonable amount on the card each year
- fly with the relevant airline or its partners
- are flexible on dates for reward seats.
It's probably not right if you carry a balance, rarely fly, or would struggle to hit spending targets without extra spending.
Compare travel and rewards cards
See airline and travel cards in the same format on Rewards & travel credit cards, or browse providers on banks & issuers, including American Express credit cards and Barclaycard credit cards.
A simple way to decide
Ask yourself four questions:
- Do I pay my card off in full every month? If not, a rewards card probably isn't for you right now.
- How much do I spend on a card each year? Lighter spenders often get better value from a fee-free card.
- Will I really redeem the points? Look at the routes and dates you'd want and check reward availability.
- Is the fee covered by perks I'll use? Count only perks you're confident you'll use, not ones that sound nice.
If you answer "no" to the first question, focus on clearing your balance first. See Balance transfer credit cards.
Points, Section 75 and refunds
If a purchase is refunded, the points earned on it are usually removed. And when you pay for a flight using points plus a cash amount by credit card, check whether the cash part is over £100 if you want Section 75 protection.
Frequently asked questions
What is Avios?
Avios is the reward currency of The British Airways Club (formerly the Executive Club) and some other airline schemes. You can earn it by flying and through partners, including some credit cards.
Do companion vouchers make flights free?
Not usually. You typically still pay taxes, fees and carrier charges, and you need enough points for the reward seat.
Are airline credit cards worth the annual fee?
Only if the value of the points and perks you'll actually use is more than the fee. Fee-free airline cards or cashback cards may be better for lighter spenders.
Do I earn points on balance transfers?
Usually not. Balance transfers, cash withdrawals and fees are normally excluded.
Do airline credit cards charge fees abroad?
Many do. Check the card's foreign transaction fee before using it overseas.
What credit score do I need for an airline credit card?
Premium rewards cards are often aimed at people with good credit histories and may have income requirements. Use a soft-search eligibility checker first.
This is general information, not financial advice. Rewards, fees and perks change often, so always check the current terms.
