IAG Loyalty

What IAG Loyalty does

IAG Loyalty is the operating company (legal entity: Avios Group (AGL) Ltd) that owns and operates the Avios global loyalty currency, serving as the central loyalty infrastructure for seven airlines — British Airways, Iberia, Aer Lingus, Vueling, Qatar Airways, Finnair, and Loganair — as well as over 125 global brand partners and 1,000+ retail partners. The company is a wholly-owned subsidiary of International Airlines Group (IAG) and runs the white-label Customer Loyalty Platform that supports 35+ million members and processes £40 billion in annual member spend, with the Avios currency facilitating 20 million collections and 16 million redemptions every hour across more than 200 countries. Beyond the core Avios currency, IAG Loyalty operates complementary product lines including British Airways Holidays (ATOL-protected tour operator with 10,500+ hotels), Wanda by Avios (travel insurance), Avios Shop (retail redemption platform with Apple products and 300+ SKUs across 17 premium brands), and The Wine Flyer (wine delivery subsidiary).

The company's revenue model is primarily transaction-fee based, driven by selling Avios to financial partners (American Express, Barclays, Santander, IndusInd, Chase, Bilt Rewards) at negotiated rates, charging partner airlines and retailers for using the Avios infrastructure, and earning affiliate/commission revenue from retail and travel partners. In 2024 the business generated over €500 million in profit at a 21% operating margin, placing it among the most profitable loyalty programmes globally and the most valuable outside the US (surpassing $10 billion in valuation). Distribution is achieved through airline partner channels (the primary member acquisition channel leveraging IAG's 600+ aircraft and 122 million annual customers), financial partner channels (co-brand credit cards and banking products), digital direct channels (Avios.com, mobile app), and an expanding retail and lifestyle partner network spanning real estate (Foxtons), dining (PizzaExpress), theatre (TodayTix), and EV charging (bp pulse).

Name

IAG Loyalty

Legal name

Avios Group (AGL) Ltd

Website

https://iagloyalty.com

Company type

Private

Founded year

1994

Operating status

Operating

Headcount range

501–1,000 employees

Short description

IAG Loyalty operates the global Avios loyalty currency used by seven airlines (British Airways, Iberia, Aer Lingus, Vueling, Qatar Airways, Finnair, Loganair) and 1,000+ partners, serving 70+ million members in 200+ countries with travel, retail, financial, and insurance redemption options.

Ownership category

akta.pro rank

Headquarters

HQ city

London

HQ country

United Kingdom

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Technology or R&D, Personnel, Marketing or Sales, Operations, Infrastructure

Revenue model

1. Financial Partnerships - Co-brand Credit Cards: IAG Loyalty generates substantial revenue through selling Avios to credit card partners including American Express (British Airways co-brand cards), Barclays (Barclaycard Avios), and others. Partners purchase Avios at negotiated rates and distribute them to cardholders as rewards for everyday spending, generating interchange revenue and loyalty programme fees.
2. Partner Fees and Licensing: Revenue from airlines (British Airways, Iberia, Aer Lingus, Vueling, Qatar Airways, Finnair, Loganair) for managing their loyalty programmes and the Avios currency infrastructure. Also includes fees from white-label platform licensing and loyalty consultancy services.
3. Retail Partnerships - Commission: Revenue from retail partnerships where members collect and redeem Avios through partner brands. Partners include Nectar, Uber, Marriott, Repsol, and hundreds of other merchants who pay commission or fees for access to the Avios collector base.
4. Avios Sales to Partners: Direct sales of Avios currency to financial and commercial partners who then distribute Avios to their customers as loyalty rewards. IAG Loyalty generated over €500 million in profit in 2024 with a 21% operating margin primarily from this stream.

Pricing tiers

Go-to-market motion3 records

Distribution channels6 records

Marketing channels7 records

Core offering

IAG Loyalty operates the Avios global loyalty currency across seven partner airlines (British Airways, Iberia, Aer Lingus, Vueling, Qatar Airways, Finnair, Loganair), serving over 70 million members in 200+ countries. The company collects Avios through more than 1,000 brand partnerships spanning aviation, financial services, retail, dining, and travel, and enables redemption for flights, hotels, car hire, retail products via the Avios Shop, wine via The Wine Flyer, and travel insurance via Wanda by Avios. It also licenses its white-label Customer Loyalty Platform to enterprise partners.

Product overview

IAG Loyalty operates a multi-airline loyalty ecosystem centered on the Avios currency, which is used by seven airlines (British Airways, Iberia, Aer Lingus, Vueling, Qatar Airways, Finnair, and Loganair) and serves over 69 million members globally. The core product is the Avios currency itself, which can be collected and redeemed across an ecosystem of travel, retail, and financial services partners. Supporting this core currency are multiple product lines: British Airways Holidays (ATOL-protected package holidays), Wanda by Avios (travel insurance), Avios Shop (online retail), The Wine Flyer (wine delivery subsidiary), and the white-label Customer Loyalty Platform for B2B partners. Each airline partner runs its own branded loyalty programme (AerClub for Aer Lingus, Iberia Plus for Iberia, Vueling Club, Privilege Club for Qatar Airways, Finnair Plus, Loganair Loyalty) that uses Avios as its currency.

Differentiator

Problem solved

Functional benefit

Brands

• The Wine Flyer: Online wine delivery business allowing British Airways Executive Club members to collect Avios on wine purchases and redeem for wine deliveries
• Wanda by Avios
• Avios Shop

Products and services

• Avios Currency
• Wanda by Avios Travel Insurance
• Avios Shop
• The Wine Flyer
• IAG Loyalty Customer Loyalty Platform
• AerClub
• British Airways Holidays

Quantifiable outcome

• IAG Loyalty generated over €500 million in profit in 2024 with a 21% operating margin
• +5 more outcomes

Named customers3 records

Segments4 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

32 partnerships are on record, tiered core, flagship and minor.

• bp pulsecoreStrategic or Co-development Partner · 17 June 2026bp pulse and IAG Loyalty launched a new partnership for electric vehicle charging. Drivers in the UK can collect up to 4 Avios per £1 when charging their electric vehicles at bp pulse stations, extending the Avios ecosystem into the sustainable mobility space.
• Aer LinguscoreStrategic or Co-development Partner · 17 June 2026Aer Lingus celebrated 10 years of its AerClub loyalty programme with the launch of its first transatlantic Avios-Only flight between Dublin and New York. The airline operates AerClub as part of the Avios ecosystem, with over 4 million members globally.
• American ExpressflagshipGTM or Marketing Partner · 10 June 2026British Airways and American Express celebrated 25 years of their co-brand card partnership with an exclusive Avios-Only flight to New York. The partnership includes British Airways American Express Credit Cards that enable cardholders to earn Avios on everyday spending, with exclusive Companion Vouchers and travel benefits.
• TodayTixminorGTM or Marketing Partner · 20 January 2026TodayTix partnered with Avios enabling British Airways Club members to collect 1 Avios per £1 spent on theatre and live entertainment tickets. Members can earn Avios on West End shows like Wicked, The Lion King, and Phantom of the Opera.
• FoxtonsminorGTM or Marketing Partner · 17 December 2025Foxtons entered an exclusive estate agency partnership with Avios, making it the only UK estate agent through which customers can collect Avios. Customers letting, selling, or instructing Foxtons for property management can collect up to 30,000 Avios.
• PizzaExpresscoreOthers · 1 December 2025This landmark partnership marks the first time customers can both collect and redeem Avios at UK restaurants, expanding the utility of Avios beyond travel into dining experiences.
• American ExpressflagshipStrategic or Co-development Partner · 7 November 2025IAG Loyalty and American Express signed a multi-year extension of their long-standing partnership, including British Airways American Express co-brand cards and ongoing American Express Membership Rewards points transfer to Avios.
• Tesco IrelandcoreGTM or Marketing Partner · 4 November 2025Aer Lingus and Tesco Ireland launched an exclusive partnership allowing AerClub members to convert Tesco Clubcard vouchers into Avios. Every €2.50 in Clubcard vouchers converts to 600 Avios, enabling grocery shopping to fund reward flights.
• Open InsurancecoreTechnology or Integration · 12 August 2025IAG Loyalty partnered with Open Insurance to launch Wanda by Avios, a smart travel insurance product with innovative features including flexible cancellation cover, fast flight delay compensation, and Avios Protect that reinstates up to 500,000 Avios if plans change.
• ClassPassminorGTM or Marketing Partner · 12 August 2025ClassPass partnered with IAG Loyalty to offer wellness credits as part of the Wanda Plus travel insurance package, providing access to fitness and wellness experiences for frequent travellers.
• UbercoreGTM or Marketing Partner · 5 June 2025Aer Lingus partnered with Uber enabling AerClub members to collect 1 Avios for every £1 spent on Uber rides in the UK and Ireland. The partnership builds on the existing British Airways Club Uber partnership, expanding Avios earning to rideshare for multiple programme members.
• LeShuttlecoreStrategic or Co-development Partner · 3 June 2025LeShuttle and IAG Loyalty launched Club LeShuttle, enabling travellers to both collect and spend Avios on Channel Tunnel crossings. This is the first time members can redeem Avios for land-based travel, with discounts starting from 1,000 Avios per booking.
• LoganaircoreStrategic or Co-development Partner · 31 March 2025Loganair adopted Avios for its Loganair Loyalty programme (formerly Clan Loganair), making it the seventh airline to join the Avios ecosystem. The partnership adds over 1 million seats for redemption per year and 21 new destinations for British Airways Club members.
• FinnaircoreStrategic or Co-development Partner · 16 August 2023Finnair's Finnair Plus programme adopted Avios as its loyalty currency in 2024, enabling the 40 million+ Finnair members to participate in the Avios ecosystem. This partnership extends Avios reach to the Nordic market.
• Reward GatewayminorGTM or Marketing Partner · 3 January 2023Reward Gateway partnered with IAG Loyalty to add Avios as an employee reward redemption option, enabling employees at client companies to convert reward points to Avios for travel rewards.
• UbercoreGTM or Marketing Partner · 7 November 2022IAG Loyalty partnered with Uber enabling British Airways Executive Club members to collect 1 Avios per £1 spent on rides, coaches, or trains through Uber in the UK. The partnership was later expanded to include AerClub members.
• The Wine FlyerminorStrategic or Co-development Partner · 26 September 2022IAG Loyalty launched The Wine Flyer, an online wine delivery business operating under a subsidiary, enabling British Airways Executive Club members to collect Avios on wine purchases and eventually redeem Avios for wine delivery.
• Bilt RewardsminorGTM or Marketing Partner · 25 August 2022Bilt Rewards partnered with IAG Loyalty enabling US renters to transfer Bilt Points (earned on rent payments) to Avios at a 1:1 ratio, making Avios accessible through the largest monthly expense for many Americans.
• IndusInd BankminorGTM or Marketing Partner · 9 August 2022IndusInd Bank partnered with Qatar Airways and British Airways to introduce a multi-branded credit card in India, the first of its kind in the country, enabling customers to collect Avios on everyday spending.
• Qatar AirwaysflagshipStrategic or Co-development Partner · 1 March 2022Qatar Airways Privilege Club adopted Avios as its rewards currency, with existing Qmiles balances converting at a 1:1 ratio. This ground-breaking partnership expanded the Avios ecosystem to the Middle East and one of the world's leading airlines.
• British AirwaysflagshipStrategic or Co-development PartnerBritish Airways operates the British Airways Club (formerly Executive Club) using Avios as its loyalty currency. British Airways is the largest airline partner and represents the primary member acquisition channel for IAG Loyalty.
• IberiacoreStrategic or Co-development PartnerIberia operates Iberia Plus using Avios as its loyalty currency. The Spanish airline is a core partner within the IAG airline group, serving the Spain and Latin America markets.
• VuelingcoreStrategic or Co-development PartnerVueling operates Vueling Club using Avios as its loyalty currency. The Spanish low-cost carrier extends the Avios ecosystem to budget-conscious travellers across European routes.
• NectarcoreGTM or Marketing PartnerNectar and IAG Loyalty launched a currency exchange partnership in 2021, allowing Nectar points to be converted to Avios and vice versa. This partnership connects the grocery loyalty ecosystem with the travel rewards ecosystem.
• MarriottcoreGTM or Marketing PartnerMarriott is a partner brand enabling members to earn and redeem Avios on hotel stays. The partnership provides Avios collectors with accommodation redemption options across Marriott's global hotel portfolio.
• Avis Budget GroupcoreGTM or Marketing PartnerAvis Budget Group partners with IAG Loyalty enabling customers to earn and redeem Avios on car rentals. The partnership provides travel convenience benefits for Avios members booking ground transportation.
• BarclayscoreGTM or Marketing PartnerBarclays offers Barclays Avios Rewards for Premier Banking customers (£12/month) and Barclaycard Avios credit cards. Customers can collect up to 1,500 Avios monthly plus bonus Avios on eligible products.
• SantanderminorGTM or Marketing PartnerSantander partnered with IAG Loyalty and Iberia to award Avios to Santander One account holders on eligible banking products. The partnership extends to Iberia Plus members in Spain.
• Bicester VillageminorGTM or Marketing PartnerIAG Loyalty and Bicester Village strengthened their 12-year partnership with Card Linked Offers enabling members to collect 5 Avios per £4 spent across 150+ stores at Bicester Village.
• IHG Hotels & ResortscoreGTM or Marketing PartnerIHG Hotels & Resorts is a longstanding partner of IAG Loyalty, enabling IHG Rewards members to earn and redeem Avios on hotel stays. The partnership is described as collaborative, data-driven, and performance-driven.
• Royal CaribbeanminorGTM or Marketing PartnerRoyal Caribbean is a partner brand enabling members to earn and redeem Avios on cruise holidays, extending the Avios redemption ecosystem beyond flights and hotels to cruise travel.
• CabifyminorGTM or Marketing PartnerCabify is a rideshare partner enabling members in Spain and Latin America to collect Avios on taxi and ride services, extending the rideshare earning category beyond Uber.

Scale indicators12 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Delta SkyMiles: Delta Air Lines' flagship loyalty programme and the most valuable airline loyalty currency globally. Operates a multi-partner earning ecosystem similar to Avios, with co-brand Amex cards, retail partnerships, and airline alliance integrations (SkyTeam). Directly comparable on currency scale, co-brand economics, and member base.
• American AAdvantage: American Airlines' loyalty programme and a top-tier global airline currency. Operates a deeply embedded co-brand card franchise with Citi and Barclays and has oneworld alliance reach comparable to Avios. Direct competitor for global corporate, retail, and travel loyalty share.
• United MileagePlus: United Airlines' loyalty programme, comparable in currency scale and partnership breadth. Operates a strong co-brand card portfolio (Chase) and Star Alliance reach. Direct competitor for transatlantic and global corporate loyalty spend.
• Lufthansa Miles & More: Europe's largest multi-airline loyalty currency, serving Lufthansa, Austrian, Swiss, Brussels, and LOT. Operates a parallel multi-airline currency model with extensive co-brand card distribution across DACH. The closest European competitor to IAG Loyalty's Avios in scale and structure.
• Air France-KLM Flying Blue: Combined Air France and KLM loyalty programme with SkyTeam alliance reach. Operates a multi-partner currency model across retail, banking, and travel. Direct European competitor with similar co-brand Amex partnership dynamics.
• Emirates Skywards: Emirates' loyalty currency, comparable in scale and partnership breadth across aviation, retail, and financial services. Operates as a single-airline currency with strong EMEA and APAC distribution, competing for global traveller share.
• Aeroplan (Air Canada): Air Canada's loyalty currency with Star Alliance reach and a multi-partner earning model. Operates a broad co-brand card franchise (TD, CIBC, Amex) and is the most analogous North American non-US carrier to IAG Loyalty's Avios multi-airline structure.

Broad incumbents

• Marriott Bonvoy: World's largest hotel loyalty programme with over 200M members and a broad multi-partner ecosystem including airline transfer partners. Not a direct airline competitor but a benchmark for loyalty scale, co-brand card economics, and travel-plus-everyday earning model.

Emerging players

• Alaska Mileage Plan: Alaska Airlines' loyalty currency with strong partner airline integrations and an outsized reputation for value among premium travellers. Smaller in scale than IAG Loyalty but operates a comparable multi-airline partner earning model.

Regional players

• Singapore KrisFlyer: Singapore Airlines' loyalty currency and one of Asia's most valuable airline loyalty programmes. Operates a multi-partner model with strong APAC retail and financial distribution. Comparable in currency structure and partnership breadth but with primarily APAC geographic focus.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/IAGLoyalty
• LinkedInlinkedin.com/company/iag-loyalty

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Subsidiaries3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about IAG Loyalty