Avios Is Now a $10 Billion Business — Here's What That Means for You

A press release landed in my inbox this afternoon from IAG Loyalty with a headline that stopped me mid-scroll: IAG's loyalty programmes have been valued at over $10 billion for the first time, placing them fourth in the world — only behind Delta, American, and United Airlines. For context, that's more than any loyalty programme outside the US. As someone who spends a not-insignificant portion of his life thinking about Avios, this deserves a proper look.

The 2026 On Point Loyalty report values IAG's collective loyalty programmes — that's The British Airways Club, AerClub, Iberia Club, and Vueling Club — at $10.3 billion. To put that in perspective, here's how the valuation has grown:

That's the programme doubling in value in just six years, and climbing from 8th to 4th in the global rankings. It's a remarkable trajectory — and one that's being driven less by flying than you might expect.

This is the detail I find most interesting. Over 80% of IAG Loyalty's revenue now comes from external partners — credit card issuers, hotels, retailers, and financial services firms — rather than from flights. IAG Loyalty reported a 2025 pre-tax profit of £506.7m, double pre-COVID levels, and issued more than 200 billion Avios to customers last year — the highest figure ever recorded.

What that tells you is that Avios has become a genuine financial currency in its own right, not just a bolt-on to a frequent flyer programme. When you spend on your Amex Platinum Business, earn through the BA Shopping Portal, or transfer Tesco Clubcard points, you're feeding a machine that's now worth more than ten billion dollars. That's quite the machine.

The report also flags some promising numbers for the other airlines in the Avios ecosystem. Qatar Airways has nearly doubled its programme valuation since the 2023 report, while Finnair has nearly doubled since 2020. That matters for collectors, because a thriving Qatar Avios programme means more redemption options, broader award seat availability, and a more competitive environment — which, in theory at least, keeps pressure on the currency holding its value.

If you're looking for award flight availability across BA, Qatar, and the wider Avios network, Award Travel Finder is worth bookmarking — it searches real-time availability across multiple programmes in one place.

This is where I want to be honest, rather than just cheering a big number from a press release.

The positive case is straightforward: a $10bn loyalty programme with 70 million members and double pre-COVID profits is not going anywhere. It has the scale, the partners, and the financial backing to remain one of the most compelling programmes for UK travellers. More Avios being issued than ever before means the ecosystem is expanding — more earn opportunities, more ways to build your balance.

But here's the honest flip side: programmes at this scale, run as commercial businesses generating over half a billion pounds in annual profit, face relentless pressure to protect their economics. We've seen this play out multiple times — Avios redemption costs have increased in recent years, seat surcharges have crept up, and partner transfer ratios have shifted. The more valuable the programme is to IAG as a revenue stream, the more carefully they'll manage how much value flows back to members. That's just how these businesses work.

My honest take? Collect Avios aggressively, but redeem strategically and don't sit on a large balance waiting for the perfect trip. The programme is strong and well-funded, but its commercial success is partly a function of carefully controlling how easy it is to extract outsized value from it.

If you're building your Avios balance, IAG Loyalty's expanding partner network is a tailwind. More partners means more earn opportunities beyond just flying. Make sure you're maximising every channel — the right credit card, the Shopping Portal, hotel transfers, and retail partners all compound quickly.

I personally use my Amex Platinum Business and Capital on Tap cards as my primary earners for everyday business spend. If you want a full overview of the best options across personal and business cards, our best Avios earning credit cards guide covers everything you need.

When it comes to planning redemptions, our Avios flight cost tool lets you check what any given trip will cost in points. And if you're thinking about topping up your balance through a points purchase, the Avios Balance Booster Calculator compares buying directly through BA, Qatar, or Finnair to find the best rate.

There's something quietly significant about a UK-rooted loyalty programme cracking the global top four. British Airways has had a turbulent few years — operationally and reputationally — but IAG Loyalty has emerged as a genuinely world-class commercial operation. The Avios currency is now used by seven airlines across multiple continents, and the programme's valuation has more than doubled in six years.

For UK collectors, that's meaningful. We're accumulating points in a programme with serious financial muscle behind it. Whether that translates into better redemption opportunities and greater availability, or simply more commercial pressure to extract value from members, will be the real story of the next few years. I'll be watching closely — and I suspect so will you.

Jack