American Express is to pay British Airways owner International Airlines Group £750 million as part of an renewed global partnership.

IAG today announced the signing multi-year renewal extending its worldwide commercial partnership with American Express.

The airline group said: “Under the agreements American Express will make a payment to IAG Loyalty of approximately £750 million, a significant part of which is a pre-purchase of Avios points that American Express will utilise in the UK and worldwide for its British Airways co-branded cards and Membership Rewards programme.”

IAG Loyalty is a subsidiary of IAG that offers a range of services to group airlines, which include Aer Lingus, Iberia and Vueling, and business-to-business clients.

These include the Avios reward currency for the BA Executive Club, Iberia Plus, Aer Club and Vueling Club customer programmes and loyalty management tools, according to IAG chief financial officer Steve Gunning in a statement to the London Stock Exchange.