Amex paying £750m to extend loyalty deal with IAG
British Airways owner International Airlines Group has signed a multi-year renewal, extending its global commercial partnership with credit card giant American Express, it announced on Friday.
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The FTSE 100 company said that under the agreements, American Express would make a payment of about £750m to IAG Loyalty.
A significant part of that would be a pre-purchase of Avios points, that American Express would utilise both in the UK and worldwide for its British Airways co-branded cards and membership rewards programme.
“IAG Loyalty is a subsidiary of International Airlines Group that offers a wide range of services to IAG airlines and business-to-business clients,” the IAG board explained in its statement.
“These include the Avios reward currency for the British Airways Executive Club, Iberia Plus, Aer Club and Vueling Club customer programmes and loyalty management tools.”
At 0828 BST, shares in International Consolidated Airlines Group were down 2.02% at 204.4p.