As the deadline approaches for British Airways to change its Avios-earning formula, it has enlisted transatlantic partner American Airlines as well. Starting October 18th, you'll earn AAdvantage miles based on the fare paid rather than the usual distance and fare class rule used by other partners. The change affects all Iberia and BA travel after this date, closing a loophole that many have looked to for earning miles under the old formula.

American Airlines joins in

On Friday, British Airways announced that it reached an agreement with American to join its new points-earning formula. Unlike BA though, this applies to travel after October 18th, not bookings made by then, so be careful if you're still trying to rack up AAdvantage points. Under the new system for British Airways and Iberia, you'll earn miles and Loyalty points based on your spending and elite status:

• General members: 5 miles per $1 spent
• AAdvantage Gold members: 40% bonus (7 miles per $1 spent)
• Platinum members: 60% bonus (8 miles per $1 spent)
• Platinum Pro members: 80% bonus (9 miles per $1 spent)
• Executive Platinum members: 120% bonus (11 miles per $1 spent)

Photo: Fasttailwind/Shutterstock

Note that this formula applies to anyone who books through British Airways, or another airline, and credits miles to AAdvantage. If you book directly with American for BA or Iberia flights, you'll earn using AAdvantage rules, which is also fare-based. You'll earn similar miles if you were crediting to British Airways as a general member, but if you have elite status with American the bonus is far higher (50% is the highest in the Executive Club vs 120% in AAdvantage).

Note that the reciprocal is true as well. So crediting American Airlines flights to British Airways will earn Avios under the 5 miles per £1 spent formula (converting fares to pounds) with eligible bonuses for Bronze, Silver, and Gold members.

In a statement about the change, Ian Romanis, British Airways’ Director of Retail and Customer Relationship Management said,

"We are pleased to welcome American Airlines into our new proposition, which will strengthen our partnership as we create a more seamless experience between our two airlines. With data showing that the majority of our customers will either collect more or the same number of Avios under the new model, we are looking forward to introducing it and rewarding our Members in a fairer way across the board.”

Closing loopholes

When British Airways announced its new earning scheme, many quickly began strategizing how to continue earning under the current structure, especially for long-haul travel. Qatar Airways is the easiest partner and since it uses Avios as its currency, points are freely transferrable. Finnair is an option as well, now more so since it's switching to Avios as well, though this will come with a spend-based model as well.

Photo: natmac stock/Shutterstock

AAdvantage was a great target as well, given how flexible the currency is for domestic US travel and lower miles threshold for partners (which still use a fixed-rate chart). However, BA and Iberia pre-empted this and given their transatlantic joint-venture, it makes sense that they treat earnings as the same. If you do manage to earn elite status with American though, this is a great option to credit points.

What do you think about British Airways' new earning model and its agreement with American? Let us know in the comments.