British Airways’ Parent to Get $1 Billion Cash Infusion from American Express

By Kurt Stolz on 31 July 2020
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A British Airways aircraft in London

British Airways’ parent International Airlines Group announced a multi-year renewal of its worldwide partnership agreement with American Express.

Under the terms of the renewal, American Express pay IAG Loyalty, an IAG subsidiary, £750 million ($987 million), the majority of which will be used for the pre-purchase of Avios points, said Steve Gunn, the group’s CFO.

The cash infusion comes at a time when the airline group is struggling to raise cash. British Airways even announced its intention to sell its corporate art collection to that end.

The airline industry is reeling amidst the coronavirus pandemic as international borders continue to remain closed to many and business travel has come to an abrupt standstill.

American Express said it will use the points for its British Airways co-branded credit cards and Membership Rewards Program.

Avios are the frequent flyer currency of British Airways, Iberia, Aer Lingus, and Vueling. Until November 2011, they were known as Air Miles.

(Photo: Accura Media Group)

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