International Consolidated Airlines Group Sa · LSE:IAG
International Consolidated Airlines Group Sa — Investor Day (June 2026)
119 slides from International Consolidated Airlines Group Sa's investor day presentation, Jun 3, 2026
Slide 1: Building to a Billion
Building to a Billion Investor Day 2026 3rd June 2026
Slide 2: Disclaimer
Disclaimer LEI: 959800TZHQRUSH1ESL13 Forward-looking statements: This announcement contains forward-looking statements within the meaning of applicable securities laws. This cautionary statement is made for the purpose of providing protection for such forward-looking statements and is intended to qu
Slide 3: Investor Day Agenda
Investor Day Agenda IAG Strategy – Accelerating Capital-Light Earnings 01 Luis Gallego Chief Executive Officer, IAG 05 Break IAG Loyalty – Building to a Billion Holidays 02 Adam Daniels Chairman and Chief Executive Officer, IAG Loyalty 06 Andrew Flintham Managing Director, Holidays Our Customers & M
Slide 4: IAG Strategy: Accelerating Capital-Light Earnings
IAG Strategy Accelerating Capital-Light Earnings Luis Gallego Chief Executive Officer, IAG
Slide 5: IAG's strategy to deliver world-class margins and returns
IAG’S STRATEGY TO DELIVER WORLD-CLASS MARGINS AND RETURNS Strategic imperatives Through-the-cycle FY25 target ambition A strong core 12-15% 15.1% Operating margin Sustainable profitability Capital-light 13-16% earnings growth 18.5% RoIC <1.8x A sustainable 0.8x Accretive Net leverage value-creation
Slide 6: Three biggest value creation levers
THE THREE BIGGEST VALUE CREATION LEVERS THAT SUPPORT THE STRATEGIC AMBITION THAT WE SET OUT IN 2023 Transforming British Airways Developing Spanish Platform Grow IAG Loyalty profit British Airways - a 15% margin business Iberia – ambition for €1.4bn profit by >10% each year Operating margin (%) Oper
Slide 7: IAG Loyalty is an integral part of the Group
IAG LOYALTY IS AN INTEGRAL PART OF THE GROUP Recognises customers for Increases loyalty Key source of IAG’s cash engaging with IAG and partners to our airlines and profits Rewards customers for flying with Builds greater share of customers Strong track record of profit growth IAG and IAG’s partners
Slide 8: IAG Loyalty is an increasingly important part of our portfolio mix
IAG LOYALTY IS AN INCREASINGLY IMPORTANT PART OF OUR PORTFOLIO MIX An increasingly important Profit doubled from 2019 – Helps to deliver IAG’s 12% to Mid-term target to achieve source of profits, cash, 2025, with high free cash flow 15% through-the-cycle margin €1bn operating profit with and capital
Slide 9: IAG Loyalty: Building to a Billion
IAG Loyalty Building to a Billion Adam Daniels Chairman and Chief Executive Officer, IAG Loyalty
Slide 10: Experienced executive team to deliver our strategy
WE HAVE AN EXPERIENCED EXECUTIVE TEAM TO DELIVER OUR STRATEGY PRESENTERS Silvia Our executive Adam Darryl Rob Daniels Cartmell McDonald Espinosa team has deep aviation and Chairman and Chief Financial Officer Chief Commercial Officer Chief Customer Officer loyalty expertise, Chief Executive Officer
Slide 11: £2.6bn revenue, £507m operating profit
£2.6bn £507m Revenue Operating Profit >20% Operating Margin ~10% Operating Margin Operating 80% 20% Profit +14% Revenue Growth (CAGR 2019-25) +11% Revenue Growth (CAGR 2019-25) 11 Note: All figures shown are for FY25; Represents underlying operating profit on a pre-HMRC VAT dispute basis; statutory
Slide 12: We operate at the centre of large global industries
WE OPERATE AT THE CENTRE OF LARGE GLOBAL INDUSTRIES Loyalty currency is the 3rd Travel is ranked largest currency reserve as the $300bn worth of points issued each year1 #1 most important discretionary purchase in the world2 1. Source: OnPoint Loyalty, The Currency Effect Global Survey Results and L
Slide 13: Decades of leadership in travel and loyalty
DECADES OF LEADERSHIP IN TRAVEL AND LOYALTY Established Rebranded 1955 1991 Incorporation of Holidays 2026 Today we are recognised as the most valuable airline loyalty business 1988 1991 2011 2020 2024 outside of the US1 Legacy Single programmes currency Entering a new phase of growth MILES 1. On Po
Slide 14: Our model: investing in customers and driving value from partners
OUR MODEL: INVESTING IN CUSTOMERS AND DRIVING VALUE FROM PARTNERS External partners Extract Invest to Sell Avios to partners higher drive deeper (IAG Loyalty makes money by selling Avios financial customer Avios issuance at a higher price than the investment cost) returns engagement Rewards (Air & b
Slide 15: Integration of Loyalty and Holidays strengthens growth potential
INTEGRATION OF LOYALTY AND HOLIDAYS STRENGTHENS GROWTH POTENTIAL 5% Holidays penetration of BA Club customer base 80% of Holidays revenue comes from BA Club members 15
Slide 16: Loyalty members generate significantly higher profitability to IAG
LOYALTY MEMBERS GENERATE SIGNIFICANTLY HIGHER PROFITABILITY TO IAG 1x 5x 11x Profit to IAG Profit to IAG Profit to IAG Airline customer Loyalty member Loyalty member who not enrolled in who collects collects while flying our programmes while flying and with other Avios partners Average profitability
Slide 17: Investment Case
Investment Case High-margin, Concentrated Unique assets Scaled partner Clear path capital-light in high-value unlock network drives to significant cash generation customer differentiated value growth segments rewards ~3x over-index in top Multi-airline currency High margins (>20% 125+ global strateg
Slide 18: A capital-light business model with attractive economics
Capital-light A CAPITAL-LIGHT BUSINESS MODEL WITH ATTRACTIVE ECONOMICS Capital-light growth <£50m yearly capex funding >10% business growth High cash conversion with Strong cash generation >100% operating profit to free cash flow High, stable operating >18% operating margin margins Less seasonal & l
Slide 19: Significant presence across the globe
High-value Customers SIGNIFICANT PRESENCE ACROSS THE GLOBE WITH ACTIVE CUSTOMERS IN OVER 80 COUNTRIES Active customer presence by country Avios is the loyalty currency of 7 airlines Lower presence Higher presence >46m >10m >1m +600 19 Total loyalty Active customers2 Holidays Holiday Airline partners
Slide 20: Concentrated in high-value customer segments
High-value Customers CONCENTRATED IN HIGH-VALUE CUSTOMER SEGMENTS We have an affluent customer base… …driving superior spend and economics 2.6x more customers earning £100k+ vs UK loyalty market average ~4x Per-card spend on our co-brands vs UK market average 5.1x more customers earning €90k+ vs Spa
Slide 21: We have a unique set of strategic assets
Unique Assets WE HAVE A UNIQUE SET OF STRATEGIC ASSETS A set of structurally Widely used Avios currency 7 airlines using Avios as their currency hard-to-replicate advantages Rich customer data First-party data across travel, spend and broader behaviours Single platform connecting 125+ partners custo
Slide 22: Our ecosystem provides rich, verified customer data
Unique Assets Customer Data Our ecosystem provides rich, Flight preference verified customer data across Holidays & travel Shopping habits travel, spend data and behaviour General demographics Which we use to inform decisions about our products, pricing and offers to improve Wealth Retail data custo
Slide 23: Our customers love our differentiated rewards
Unique Assets Differentiated rewards OUR CUSTOMERS LOVE OUR DIFFERENTIATED REWARDS Guaranteed availability Breadth of partner network of flights for reward spend Guaranteed minimum number of Across …and everyday seats on British Airways and Iberia multiple airlines… spend Car Hire Reward spend avail
Slide 24: Rewards power access to world-class partnerships
THESE REWARDS POWER ACCESS TO WORLD-CLASS PARTNERSHIPS Our customers Customers are Partners purchase highly value and willing to buy from Avios to increase actively pursue our our partners to customer loyalty and unique rewards unlock those rewards share of wallet 24
Slide 25: A world-class partner ecosystem
Scaled Partner Network A WORLD-CLASS PARTNER ECOSYSTEM Breadth Quality Exclusive Integrated >125 Strategic partners globally Top-tier, globally recognised brands Exclusive long-term partnerships Seamless earn-and-spend through our 28% proprietary tech of customers multi- collect2, earning 69% >10,50
Slide 26: A clear path to €1bn profit and beyond
Clear Growth Path BUILDING TO A BILLION and beyond A clear path to €1bn profit and beyond Unlocking full potential of Operating Profit1, EUR existing levers New Customer engagement New markets and opportunities products Increase multi-collection Expand Loyalty and (incl. inorganic) Customer acquisit
Slide 27: Our Customers and Markets
Our Customers and Markets Silvia Espinosa de los Monteros Chief Customer Officer, Loyalty
Slide 28: Investment Case: Concentrated in high-value customer segments
Investment Case Concentrated in high-value customer segments Large and growing Premium behaviour Deepen engagement customer base and high quality across the ecosystem 28
Slide 29: Active customer base growing at ~13% CAGR
High-value Customers ACTIVE CUSTOMER BASE GROWING AT ~13% CAGR >46m enrolled customers1 ~13% CAGR 10.6 9.6m 8.6m million active customers2 7.3m 2022 2023 2024 2025 1. Customers enrolled in IAG airline loyalty programmes. Note, the total number of enrolled customers in Avios currency programmes (incl
Slide 30: Active customer base spanning over 80 countries
High-value Customers ACTIVE CUSTOMER BASE SPANNING OVER 80 COUNTRIES Active customer presence by country 80+ countries with more than 1k active customers Lower presence Higher presence Note: Active customers are customers who engaged with IAG Loyalty (earn or redeem Avios) in last 12 months 30
Slide 31: Skewed towards high-earning segments
High-value Customers SKEWED TOWARDS HIGH-EARNING SEGMENTS Customer base household income compared to loyalty market And our proposition reflects this Country specific loyalty market IAG Loyalty customer base 2.6x higher vs UK loyalty market 1.4x higher vs UK loyalty market Premium Premium co-brand c
Slide 32: Deep engagement across all areas of our ecosystem
High-value Customers DEEP ENGAGEMENT ACROSS ALL AREAS OF OUR ECOSYSTEM Air Holiday Packages Financial Services Retail 75% ~450k ~3m +£700m active customers holiday bookings customers earning spent on The collect through from British Airways with financial Avios Store flying Club members services par
Slide 33: Multi-collectors are critical, driving 69% of Avios issuance
High-value Customers MULTI-COLLECTORS ARE CRITICAL, DRIVING 69% OF AVIOS ISSUANCE Multi-collectors are members who collect with more than one partner1 (e.g. Iberia & Repsol; Aer Lingus & Tesco Ireland; American Express & Uber) Active customers and total issuance distribution by number of partners (2
Slide 34: Deep understanding of what our customers value
High-value Customers WE HAVE A DEEP UNDERSTANDING OF WHAT OUR CUSTOMERS VALUE Fair and Ease of use and Availability of loyalty Avios as non-replicable good value understanding & holidays rewards access to desirable travel The club has lots of Without reward flights, positives and the I have enough p
Slide 35: Deep engagement creates rich customer data
High-value Customers DEEP ENGAGEMENT CREATES RICH CUSTOMER DATA WHICH WE ARE STARTING TO LEVERAGE The more customers engage with us, the more The breadth and quality of our data makes touchpoints they have across our ecosystem it difficult to replicate Travel preferences We are at the start of our j
Slide 36: Investment Case
Investment Case High-margin, Concentrated Unique assets Scaled partner Clear path capital-light in high-value unlock network drives to significant cash generation customer differentiated value growth segments rewards 36
Slide 37: Market and customer trends support long-term growth
Clear Growth Path MARKET AND CUSTOMER TRENDS SUPPORT OUR LONG-TERM GROWTH Appetite for experiences, Payment systems increasingly Shift towards higher value particularly travel1 tied to loyalty and trusted holiday offerings 84% of UK consumers 33% of consumers select their 34% of people used a travel
Slide 38: Attractive markets with growth potential
Clear Growth Path ATTRACTIVE MARKETS WITH GROWTH POTENTIAL United Kingdom Spain Ireland United States Latam IAG presence Market maturity Highly attractive across Attractive with strong Smaller market with Attractive but with Attractive but with Overall market both divisions growth potential growth p
Slide 39: A strong customer pipeline with proven conversion
Clear Growth Path A STRONG CUSTOMER PIPELINE WITH PROVEN CONVERSION TO HIGHER ENGAGEMENT Acquisition Enrolment Activation Multi-collection 122m >46m >10m ~3m IAG airline Total enrolled Active loyalty Customers passengers loyalty customers customers collecting with more than one partner 39 Note: Pass
Slide 40: A clear path to unlocking further growth from our customers
Clear Growth Path WITH A CLEAR PATH TO UNLOCKING FURTHER GROWTH FROM OUR CUSTOMERS Acquisition Enrolment Activation Multi-collection Starlink partnership to accelerate enrolment More compelling partners and proposition We expect our partnership to supercharge loyalty uptake Enhancing our loyalty and
Slide 41: Starlink will transform customer acquisition and engagement
Clear Growth Path STARLINK WILL TRANSFORM CUSTOMER ACQUISITION AND ENGAGEMENT High-speed wifi across IAG airlines 500+ aircraft Customers required to sign up or log into loyalty programmes 41
Slide 42: Clear path to double our active customers
Clear Growth Path Through our growth initiatives… …we have a clear path to double our active customers 42
Slide 43: Loyalty
Loyalty Ro b M c D o n a l d Chief Commercial Officer, Loyalty
Slide 44: Customer engagement powers the loyalty flywheel
CUSTOMER ENGAGEMENT POWERS THE LOYALTY FLYWHEEL Customer creates an account with an IAG airline and Invest to collects Avios when flying Extract Customer starts collecting drive deeper higher additionally beyond financial customer airlines to redeem faster returns engagement Customer redeems their A
Slide 45: Our loyalty strengths today
OUR LOYALTY STRENGTHS TODAY Unique assets unlock Scaled partner network differentiated rewards drives value We offer unique rewards We have created Our Avios channels and We have a broad range to our customers a trusted brand platforms enable direct of Avios partners across customer relationships in
Slide 46: Significant customer value from differentiated rewards
Unique Assets Differentiated rewards SIGNIFICANT CUSTOMER VALUE FROM OUR DIFFERENTIATED REWARDS Guaranteed availability Customers able to redeem across of flights with high a broad range of everyday partners customer value Across airlines… …and broader industries >1m Network serves ~£150 accounts li
Slide 47: Partners benefit from higher engagement and spend
Scaled Partner Network PARTNERS BENEFIT FROM HIGHER ENGAGEMENT AND SPEND Our partners use the Avios proposition to increase: PA R T N E R E X A M P L E S 14% re-engagement of lapsed customers after Depth Frequency just 2 weeks of partnership with us of spend of spend A UK casual dining partner reali
Slide 48: Building a powerful, cross-industry partner network
Scaled Partner Network BUILDING A POWERFUL, CROSS-INDUSTRY PARTNER NETWORK 125+ Partners 19 Airlines 2,200+ Brands 48
Slide 49: Cross-industry partners drive engagement in different ways
Scaled Partner Network CROSS-INDUSTRY PARTNERS DRIVE ENGAGEMENT IN DIFFERENT WAYS Airlines Financial Services Retail & Travel-Related Expanded global airline Strong economics, daily Drive customer scale network for customers customer engagement and behaviour Avios Currency Exchange Co-brand card par
Slide 50: Our partner ecosystem covers almost all categories of consumer spend
Scaled Partner Network Our partner ecosystem covers almost all categories of consumer spend 50
Slide 51: Our partner ecosystem covers almost all categories of consumer spend
Scaled Partner Network Credit card Hotels Car hire Banking purchases across all industries Insurance Travel retail Our partner ecosystem covers almost all categories Housing Energy of consumer spend Dining Groceries Media & Airlines entertainment Retail 51
Slide 52: Retail and travel partnerships provide everyday utility
Scaled Partner Network OUR RETAIL AND TRAVEL PARTNERSHIPS PROVIDE EVERYDAY UTILITY TO CUSTOMERS AND DEEPEN ENGAGEMENT Loyalty members who have linked their Uber accounts have… Greater overall Avios transaction frequency (Average total number of Avios-earning transactions FY251) 6x Retail and travel
Slide 53: Avios is an increasingly influential consumer brand
Unique Assets AVIOS IS AN INCREASINGLY INFLUENTIAL CONSUMER BRAND 53
Slide 54: Avios is an increasingly influential consumer brand
Unique Assets AVIOS IS AN INCREASINGLY INFLUENTIAL CONSUMER BRAND We have seen increasing brand awareness and advocacy +13ppts increase in ABC1 LSE1 awareness following the campaign Avios Advocacy 1 in 2 would recommend Avios to a friend in the UK (75% in Spain) 1. Customers in London and South East
Slide 55: Multi-channel approach through Avios.com and the Avios app
Unique Assets OUR MULTI-CHANNEL APPROACH ENABLES DIRECT CUSTOMER RELATIONSHIPS THROUGH AVIOS.COM AND THE AVIOS APP INSERT VIDEO 55
Slide 56: Proprietary technology platforms power scale and growth
Scaled Partner Network OUR PROPRIETARY TECHNOLOGY PLATFORMS POWER SCALE AND GROWTH We have a modern Enabling a smooth customer technology platform journey and business-led delivery >2,200 Seamless APIs Joined-up user experience Brands to collect Avios with when shopping online Cloud infrastructure S
Slide 57: Strengths have underpinned Loyalty's growth to date
THESE STRENGTHS HAVE UNDERPINNED LOYALTY’S GROWTH TO DATE ~20% CAGR 200 176bn Billion Avios Issued 141bn 104bn 2022 2023 2024 2025 57
Slide 58: Investment Case: Our plan for Loyalty growth
Investment Case High-margin, Concentrated Unique assets Scaled partner Clear path capital-light in high-value unlock network drives to significant cash generation customer differentiated value growth segments rewards Our plan for Loyalty growth 58
Slide 59: Clear path for sustained growth: co-brand cards
Clear Growth Path WE HAVE A CLEAR PATH FOR SUSTAINED GROWTH Increase customers’ take-up of co-brand cards 2025 ~20% >15% of global active customers UK credit card market share2 have a co-brand1 Grow UK co-brand market share to Mid-term Grow number of loyalty ambition customers with a co-brand >20% A
Slide 60: Clear path: redemption and new partnerships
Clear Growth Path WE HAVE A CLEAR PATH FOR SUSTAINED GROWTH Enhance redemption and Sign new partnerships increase availability across all our markets >90% Avios redeemed with travel partners Spain Latam Ireland Retain travel as core of redemption Sign new tier 1 partnerships expansion in Spain, Lata
Slide 61: Holidays
Holidays Andrew Flintham Managing Director, Holidays
Slide 62: Our Holidays strengths today
OUR HOLIDAYS STRENGTHS TODAY Concentrated Unique assets unlock Scaled partner network in high-value customer differentiated rewards drives value segments Quality, resilient Trusted brand Integrated Global network of demand driven & exceptional loyalty partners and by premium service proposition dest
Slide 63: High-value customers drive quality, resilient demand
High-value Customers HIGH-VALUE CUSTOMERS DRIVE QUALITY, RESILIENT DEMAND PREMIUM CUSTOMERS #1 holiday provider FREQUENT SPEND ~2x considered by households average number of earning >£100k/year1 holidays per year2 PREMIUM HOTELS 60% ECONOMIC RESILIENCE 81% of affluent travellers say travel hotel rev
Slide 64: Strong customer advocacy supported by exceptional service
Unique Assets STRONG CUSTOMER ADVOCACY SUPPORTED BY EXCEPTIONAL SERVICE Exceptional customer support 24/7 ~99% Customer care complaint-free holidays1 Supporting customers when they need us We are deeply grateful to the BA Holidays 86% Top 10 UK brand duty office team…The exceptional care and would (
Slide 65: Loyalty integration is a structural advantage
Unique Assets Loyalty integration LOYALTY INTEGRATION IS A STRUCTURAL ADVANTAGE Customers can earn elite Holiday customers benefit from status and earn and spend Holidays is fully integrated access to broader ecosystem Avios on every with The British Airways Club across travel holiday booking and lo
Slide 66: Driving higher customer engagement
Unique Assets Loyalty integration DRIVING HIGHER CUSTOMER ENGAGEMENT… +69% ~10% ~1/5 ~2.2 BA Club Gold member of all BA Club tier use Avios to BA holidays short-haul city bookings points earned on pay for part of per year from after change to holiday bookings their holiday Gold members loyalty propo
Slide 67: Higher returns with lower acquisition costs
Unique Assets Loyalty integration …AND HIGHER RETURNS WITH LOWER ACQUISITION COSTS Holidays currently has a Significant headroom to Strong pipeline 5% penetration of the grow Holidays customers BA Club customer base from loyalty pipeline with of high-quality, low acquisition cost high-spend customer
Slide 68: Global network enables resilience and supports growth
Scaled Partner Network OUR GLOBAL NETWORK ENABLES RESILIENCE AND SUPPORTS GROWTH E A S Y J E T H O L I D AY S J E T 2 H O L I D AY S O U R H O L I D AY N E T W O R K Our global network provides flexibility today and significant headroom to scale within our existing airline footprint Note: non-exhaus
Slide 69: Investment Case
Investment Case High-margin, Concentrated Unique assets Scaled partner Clear path capital-light in high-value unlock network drives to significant cash generation customer differentiated value growth segments rewards 69
Slide 70: A clear plan to capture growth potential
Clear Growth Path A CLEAR PLAN TO CAPTURE GROWTH POTENTIAL Grow our base Expand holidays Grow our New platform, of customers business to new share of wallet app and customer markets through product experience (Spain & Ireland) expansion 70
Slide 71: Increasing penetration of the loyalty customer base
Clear Growth Path Grow our customer base INCREASING PENETRATION OF THE LOYALTY CUSTOMER BASE There is clear room for We will drive increased loyalty growth in our existing base penetration with: Targeted marketing and CRM efforts Strong existing 80% of Holidays conversion from revenue comes our loya
Slide 72: Replicate and scale our model in Spain and Ireland
Clear Growth Path Market expansion We see opportunity to replicate and scale our model >€7bn market package in Spain and Ireland opportunity across by leveraging our strong Spain and Ireland1 airline presence 1. 2024 gross value of travel booking (€bn), includes outbound packages for Ireland, outbou
Slide 73: Expanding our product range to grow share of wallet
Clear Growth Path Product expansion EXPANDING OUR PRODUCT RANGE TO GROW OUR SHARE OF WALLET Market view: % of BA flyers who have been on type of trip in the last 12 months 5-8 leisure trips are taken per year on Most popular products are offered today 54% - Beach 45% - City trip average by our BA Cl
Slide 74: Replacing 90% of our current technology
Clear Growth Path New platform REPLACING 90% OF OUR CURRENT TECHNOLOGY TO TRANSFORM THE CUSTOMER EXPERIENCE Our digital transformation Full platform roll-out and impacts will deliver… to scale from 2027 onwards Already live in select hotels! End-to-end personalised customer servicing across the enti
Slide 75: New BA Holidays app
Clear Growth Path New app OUR NEW BA HOLIDAYS APP WILL BE A COMPANION FOR EVERY STAGE OF THE TRIP App to be launched in H2 2026 with further features to follow in 2027 Trip information Personalised AI travel tips Loyalty account details (tier points, Avios) Support 75
Slide 76: A clear plan to capture growth potential
Clear Growth Path A CLEAR PLAN TO CAPTURE GROWTH POTENTIAL Grow our base Expand holidays Grow our New platform, of customers businesses to new share of wallet app and customer markets (Spain through product experience & Ireland) expansion Driving increased Leveraging IAG Capturing a greater Improvin
Slide 77: Delivering Our Ambition
Delivering Our Ambition Darr yl Cartmell Chief Financial Officer, IAG Loyalty
Slide 78: A track record of strong and consistent financial delivery
Clear Growth Path A TRACK RECORD OF STRONG AND CONSISTENT FINANCIAL DELIVERY IAG Loyalty operating profit1 (£m) 2.3x 507 Doubled profit 420 since 2019 367 297 Delivering 217 consistently high 109 margins 67 2019 2020 2021 2022 2023 2024 2025 Operating Margin, % 17% 16% 18% 20% 18% 17% 19% 1. Represe
Slide 79: Outperforming global airline loyalty peers
Clear Growth Path OUTPERFORMING GLOBAL AIRLINE LOYALTY PEERS IAG Loyalty Revenue1 Growth (CAGR 2019 – 2025) 12.6% 9.2% 5.4% Combined US airline businesses Loyalty Revenue % of Group Revenue 2025 9% 12% 12% Source: Company annual reports 1. Loyalty revenue is the total revenue of the loyalty business
Slide 80: Most valuable airline loyalty business outside of the US
Clear Growth Path WE ARE RECOGNISED AS THE MOST VALUABLE AIRLINE LOYALTY BUSINESS OUTSIDE OF THE US 2020 2023 2026 Driven by: 1 1 1 ✓ IAG Loyalty 2 2 2 Significant growth, strong cash generation 3 3 3 4 4 4 ✓ IAG airlines Airline scale, network 5 5 5 strength, demand and performance 6 6 6 7 7 7 ✓ Ma
Slide 81: What sets IAG Loyalty apart from peers
Clear Growth Path WHAT SETS IAG LOYALTY APART FROM GLOBAL AIRLINE LOYALTY PEERS Avios is a unique Best-in-class network Track record of multi-market, of partners and delivery with multi-airline currency rewards across significant growth industries and headroom across geographies markets 81
Slide 82: Investment Case
Investment Case High-margin, Concentrated Unique assets Scaled partner Clear path capital-light in high-value unlock network drives to significant cash generation customer differentiated value growth segments rewards 82
Slide 83: Financial benefits of our model complement the IAG portfolio
Capital-light THE FINANCIAL BENEFITS OF OUR MODEL COMPLEMENT THE IAG PORTFOLIO Capital-light Strong cash High operating Less seasonal growth generation margins & less cycle sensitive earnings Low investment Driven by partner- Resilient model proven A unique business required to fund our funded econo
Slide 84: Growing Avios issuance drives free cash flow above operating profit
Capital-light GROWING AVIOS ISSUANCE DRIVES FREE CASH FLOW ABOVE OPERATING PROFIT Free cash flow build-up (Illustrative - numbers not to scale) ❑ Cash is received upfront when Avios are issued, but revenue is 7 recognised over time ❑ Whilst Avios issued remains 4 greater than Avios redeemed, free ca
Slide 85: Variable cost base means stable margins
Capital-light VARIABLE COST BASE MEANS STABLE MARGINS Cost split (2025) Overheads <15% 23% 10% <10% Overheads margin >90% margin >85% Cost of sales1 Cost of sales Stable margins over time Opportunity for margin expansion Mid-term ambition: overall margin >18% 1. Cost of sales refer to redemption cos
Slide 86: Customer engagement and cash remain resilient through the cycle
Capital-light CUSTOMER ENGAGEMENT AND CASH REMAIN RESILIENT THROUGH THE CYCLE CUSTOMERS1 REVENUES2 PROFIT3 FREE CASH FLOW FY19 >8m £1,290m £217m £106m 17% of revenues ~50% of operating profit FY20 >5m £429m £67m £877m 16% of revenues >100% of operating profit4 FY25 >10m £2,637m £507m £644m 19% of re
Slide 87: Financial growth underpinned by deepening customer engagement
Capital-light FINANCIAL GROWTH HAS BEEN UNDERPINNED BY DEEPENING CUSTOMER ENGAGEMENT AND HIGHER QUALITY OF EARNINGS +26% Active customers +16% Multi-collectors SINCE 2019 W E H AV E S E E N : +36% Average issuance per active customer +17% Average redemption per redeeming customer 2025 vs 2019 Single
Slide 88: Customers engaging across more partners generate higher profit
Clear Growth Path CUSTOMERS WHO ENGAGE ACROSS MORE PARTNERS GENERATE MATERIALLY HIGHER PROFIT Average profit per customer by activity type (£m average customer profit to scale, based on profit of British Airways Club customer activity to IAG Loyalty, FY25)1 3x profit 2x profit ~breakeven Customer in
Slide 89: Financial services is a key driver of profitability
Clear Growth Path FINANCIAL SERVICES IS A KEY DRIVER OF PROFITABILITY Loyalty: Cash received for Avios issued Driven by a scaled, diversified £m, FY2025 and global network of partners IAG airlines 19% 17 co-brand card partners worldwide >10% CAGR1 Retail, Travel 14% 23 Points to Avios partners and L
Slide 90: Co-brands supported by strong underlying market growth
Clear Growth Path CO-BRANDS ARE AT THE HEART OF OUR SUCCESS, SUPPORTED BY STRONG UNDERLYING MARKET GROWTH UK credit and debit card market growth Total spend, £bn (2018-2025) Strong credit card evolution Credit card with further growth potential Debit card >£1 trillion spend ~5% market Credit card gr
Slide 91: Leading UK co-brand position provides growth headroom
Clear Growth Path OUR LEADING UK CO-BRAND POSITION PROVIDES SIGNIFICANT GROWTH HEADROOM Spend on UK co-brands (Illustrative) >1% pa c5% pa Increasing IAG Loyalty market share Leverage best Underlying credit practice to card market growth + Customer acquisition accelerate growth + Increased co-brand
Slide 92: A clear path to €1bn profit and beyond
Clear Growth Path BUILDING TO A BILLION and beyond A clear path to €1bn profit and beyond Unlocking full potential of Operating Profit1, EUR existing levers New Customer engagement New markets and opportunities products Increase multi-collection Expand Loyalty and (incl. inorganic) Customer acquisit
Slide 93: Our mid-term ambition
Clear Growth Path BUILDING TO A BILLION Our mid-term ambition Target of €1bn profit with high levels of growth, margin and cash flow1 Operating profit High margins High free cash flow € 1bn >18% >100% Operating Operating Free cash flow to profit margin Operating profit Our mid-term ambition 1. Repre
Slide 94: Closing Remarks
Closing Remarks Adam Daniels Chairman and Chief Executive Officer, IAG Loyalty
Slide 95: IAG Loyalty: an integral part of IAG, creating value across the Group
IAG LOYALTY: AN INTEGRAL PART OF IAG, CREATING VALUE ACROSS THE GROUP Mid-term ambition Investment case Key takeaways €1bn IAG Loyalty… High-margin, capital-light cash generation profit Concentrated in high-value customer segments ✓ Integral to IAG >18% margin ✓ Unique assets and >100% FCF to operat
Slide 96: IAG Loyalty
IAG Loyalty= LOYALTY | HOLIDAYS
Slide 97: Appendix
Appendix 1. Recap of previous analyst briefings 2. Additional information 3. Executive team profiles
Slide 98: Loyalty Fundamentals
Loyalty Fundamentals Re c a p o f p r e v i o u s a n a l y s t b r i e f i n g s
Slide 99: Who we are: One business, two divisions
Who we are | IAG Loyalty: One business, two divisions 2025 figures +27% Revenue growth +14% Revenue growth (CAGR 2022-25) (CAGR 2022-25) >20% Operating margin Holidays ~10% Operating margin 20% 7 airlines with same currency >80% Holidays revenue from BA Club members Operating +10m Active customers1
Slide 100: We have an asset-light business model
Our business model | We have an asset-light business model that complements IAG’s airline portfolio IAG Loyalty as a capital-light business 1 2 3 4 Capital-light, High operating Strong cash Less seasonal & higher growth margins generation cycle resilient earnings IAG Loyalty supports IAG’s airlines
Slide 101: Partners pay IAG Loyalty to award customers Avios
Our business model | Partners pay IAG Loyalty to award their customers Avios when they spend with them, which customers can later redeem for a range of rewards Purchase of Purchase of Avios1 Avios2 External partners Redemption Redemption of Avios of Avios3 IAG Loyalty further monetising the customer
Slide 102: Customers can earn Avios with air and non-air partners
Our business model | Our customers can earn Avios with a variety of air and non-air partners including both internal (IAG) and external options Non-exhaustive Air Partners Non-Air Partners IAGL has been expanding its internal non-air partners including… Internal (IAG) Over 125+ NAPs across multiple
Slide 103: How we make money: main revenue streams
Illustrative How we make money | Main revenue streams for our loyalty business External Internal (c80% of total revenue) (c20% total revenue) Financial Services Retail & Travel4 Airlines Premium economics, daily Strong economics, drive Drive airline engagement & Purpose customer engagement customer
Slide 104: Our accounting model under IFRS 15
How we make money | Our accounting model under IFRS 15 Illustrative example of cash flow and margin recognition Cashflow, (£m) 100 Cash-in (Billed Revenue) Cash-out (Redemption) 50 +100 0 -15 -8 -4 -4 IAG Loyalty applies the IFRS 15 -25 -50 accounting standard Year 1 Year 2 Year 3 Year 4 Year 5 Tota
Slide 105: Holidays uses airline inventory and third-party suppliers
Our business model | Holidays uses airline inventory and third-party suppliers to drive margin on packages and incremental demand and load factor for the airlines Pre-contracted Access to IAG airline inventory access inventory at agreed rates Holidays third-party provider Margin generated Flight rev
Slide 106: Holidays makes margin from ground-based components
How we make money | Holidays makes margin from the ground-based components of holidays packages, with IAG airlines receiving the air fare margin Total IAG view IAG Airlines Holidays Customer purchases a Provides access to air inventory Sources hotel partnerships and Description combined flight + hot
Slide 107: Our P&L in the context of IAG annual accounts
How we make money | Our P&L in the context of IAG annual accounts IAG FY25 – Segment P&L view For the year to 31 December 2025 Primary drivers 2025 British Aer Other Passenger revenue € million Iberia Vueling IAG Loyalty Group Total Airways Lingus companies • Revenue recognised upon redemption of Av
Slide 108: Additional information
Additional information
Slide 109: Mid-term ambition reflects underlying operating profit in EUR
MID-TERM AMBITION REFLECTS UNDERLYING OPERATING PROFIT IN EUR IAG Loyalty FY25 underlying and reported operating profit in EUR and GBP GBP: EUR translation rate: 1.17 € 593m € 548m £507m Underlying (GBP) Underlying (EUR) IAG Annual Report (EUR) IAG Loyalty operating profit on pre-HMRC VAT dispute ba
Slide 110: Executive team
Executive team
Slide 111: Adam Daniels
Adam Daniels Chair and Chief Executive Officer, IAG Loyalty Adam has led IAG Loyalty as Chief Executive Officer and Chairman since February 2020. Previously he was Chief Commercial Officer from October 2018, having moved over from British Airways where he was also CCO from 2015-18. IAG Loyalty is ho
Slide 112: Silvia Espinosa de los Monteros de Simon
Silvia Espinosa de los Monteros de Simon Chief Customer Officer, Loyalty Silvia is an experienced executive with a strong background in strategic roles and currently leads the customer area within IAG Loyalty’s Loyalty division. Silvia leads teams in both Spain and the UK, including contact centre c
Slide 113: Rob McDonald
Rob McDonald Chief Commercial Officer, Loyalty Rob is responsible for the commercial and global currency teams within the Loyalty division at IAG Loyalty. He joined IAG Loyalty in 2018 as the Director of Group Loyalty, before transitioning to the role of Chief Commercial Officer in 2020. He has exte
Slide 114: Andrew Flintham
Andrew Flintham Managing Director, Holidays Andrew is Managing Director of the Holidays division at IAG Loyalty, which includes British Airways Holidays in the UK. He brings over 25 years of travel and aviation experience to the role. He joined in October 2024, following senior leadership positions
Slide 115: Darryl Cartmell
Darryl Cartmell Chief Financial Officer, IAG Loyalty Darryl is an accomplished finance executive with over 20 years of experience. As Chief Financial Officer at IAG Loyalty, Darryl plays a pivotal role in driving strategic planning, investment appraisal, and commercial decision-making across the bus
Slide 116: Stephen Scott
Stephen Scott Chief Data, Tech and AI Officer, IAG Loyalty Stephen (known as Scottie) is an experienced Non-Executive Director, board member and C- level Data, Tech and AI executive focused on leading transformational change. Scottie’s focus is on product, data and digital strategy, building strong
Slide 117: Helen Miller
Helen Miller Chief People & Communications Officer, IAG Loyalty Helen is a seasoned leader with over two decades of experience shaping people, culture and communications strategy across e-commerce, music, and loyalty sectors. As Chief People & Communications Officer at IAG Loyalty, she leads the com
Slide 118: Jack Smith
Jack Smith Chief Retail Officer, Loyalty Jack is an accomplished digital and eCommerce leader with over two decades of experience driving innovation across retail and travel. He is currently the Chief Retail Officer within the Loyalty division at IAG Loyalty, leading its direct to consumer activitie
Slide 119: IAG Loyalty
IAG Loyalty= LOYALTY | HOLIDAYS
International Consolidated Airlines Group, S.A. (IAG) — Investor Day (June 2026) on 6ix