IAG Loyalty, the frequent flyer program that runs Avios, is expanding its partnerships beyond IAG airlines like British Airways, Iberia, and Aer Lingus. They have recently brought on partners such as Qatar Airways and Finnair. The program has seen a 17% increase in new members, totaling around 4.9 million customers. CEO Adam Daniels has ambitious plans for Avios, aiming to make it a global currency. They are actively seeking partnerships with other airlines and businesses to grow their program.
Avios has been successful in adding partners in recent years, including Uber and various financial services companies. The program has seen benefits from partners joining, with customers switching to partners that use the Avios currency. They have plans to further expand their partnerships in the coming months. Avios aims to become a global currency by allowing customers to move the currency between airlines. They have already signed relationships with Qatar Airways and Finnair, allowing customers to redeem points across different carriers.
There has been concern over the devaluation of frequent flyer miles, especially in the U.S. due to inflationary pressures. Airlines have been increasing reward costs and shifting towards a spend-based approach for earning points. Avios is focused on ensuring customers perceive value from their rewards and are working to make it easier for customers to redeem their miles. They believe that a spend-based approach is fair to consumers and makes sense for their program.
The airline industry is experiencing consolidation, which may impact loyalty programs in the future. There is likely to be greater integration and cooperation between loyalty programs within alliances and across industries. Stronger loyalty programs will collaborate with other businesses, leading to a trend of closer connections within the loyalty space. Avios is prepared for potential consolidation in the industry and is focused on growing their partnerships and offerings to remain competitive.
The performance of airline sector stocks within the ST200 index, which includes publicly traded companies across global markets, is important to track in the industry. The index encompasses network carriers, low-cost carriers, and related companies, providing a comprehensive view of the sector’s financial performance. The Skift Travel 200 combines the financial performance of nearly 200 travel companies, totaling over a trillion dollars, into a single number. This index is essential for analyzing the overall health and trends in the airlines sector.
