Iberia On Business: Unannounced Shift to Revenue-Based Redemptions

Iberia’s On Business loyalty program for small businesses has abruptly shifted to a revenue-based redemption model, impacting members without prior notice. On Business, operated by British Airways and Iberia, allows companies to earn points while individual travellers still accrue Avios on flights with American Airlines, British Airways, Iberia, and Japan Airlines – a benefit known as “double-dipping.”

Previously, the BA version of On Business saw companies earn 1 to 1.5 points per £1 spent (excluding taxes), redeemable via an award chart where 1 On Business point was roughly equivalent to 4 Avios for Economy and 2 Avios for Business. A key advantage was superior reward availability compared to Avios, making it valuable for securing flights during peak demand.

Iberia’s change means existing On Business points were converted into cash credit at a rate of 100 points = €5. Going forward, members earn a cashback credit of 5% to 7.5% on spending, replacing the point system. While the new earn rate is theoretically fair for economy redemptions (equating 1 point to 5 Eurocents), and significantly improves value for business class redemptions which were previously poor, it eliminates the program's utility for securing flights at short notice when cash fares are high.

Risks and other details include cash credit expiring after 18 months of inactivity, and crucially, tickets purchased with this credit will not earn Avios or tier points, a significant downgrade. However, the credit can cover base fares, taxes, and charges, and allows for part-payment. The British Airways On Business program remains unchanged for now, still operating on a points and award chart system. Yet, Iberia's unannounced move raises concerns that BA might follow suit, prompting advice for members to redeem existing points sooner rather than later if they prefer the old model. This shift to cash credit also poses potential tax implications for companies and fundamentally alters the program's strategic value from securing otherwise expensive flights to a straightforward discount.

(Source: https://www.headforpoints.com/2025/10/18/iberia-on-business-programme-changes/)