Why cant I book American Airlines business class with avios?

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Because they’re partners with BA, Iberia and now Qatar. Or are you trying to ask why you can’t? And you can.

Sorry - meant to say can't. I'm trying to book NYC to BCN on March 27th - but only lets me select economy despite seeing on Americans site it's available

You need to check for booking class ‘U’ on american’s website. If it’s ‘J’ it won’t let you book with avios

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