In the second quarter 2024 earnings call, held on July 11, 2024, Delta said the carrier earned $1.9 billion from their relationship with American Express

 

Earnings Part of Long-Term Goal to Earn $10 Billion From SkyMiles

During the call, Delta president Glen Haustein told investors and reporters the carrier’s relationship with the financial services giant was in the billions. Moreover, the airline expects their revenue from cards to outpace the entire industry.

 

“Spend growth in our co-brand card portfolio is expected to continue outpacing the credit card industry,” said Haustein, according to a Seeking Alpha transcript. “American Express renumeration for the quarter was $1.9 billion, up 9% year-over-year.”

 

Combined with other products, including premium seating and cargo, the airline’s “diverse revenue streams” generated nearly half of Delta’s total revenue. Loyalty is a major part of that, as 30% of SkyMiles flyers currently hold a Delta credit card from American Express.

 

“More and more customers are joining our SkyMiles loyalty program and deepening engagement beyond flight,” Delta CEO Ed Bastian said in the call, according to the transcript. “New card acquisitions are skewing younger, and the overall portfolio continues to shift to a more premium mix, positioning us well to achieve our long-term remuneration goal of $10 billion.”

 

Delta credits their overall positioning and operational success for the growth behind their loyalty business and credit cards. Bastian says providing a “premium experience” – ranging from customer service and premium seating to their on-time performance – gives them an advantage in working with American Express and other partners.

 

“That’s why business travelers choose Delta. That’s why we have the opportunities internationally that we do,” said Bastian, as quoted in the transcript. “That’s why American Express, the top credit card provider in the world, in my opinion chooses Delta as their exclusive partner…The industry needs to continue to find better ways in which to manage the higher costs that they are facing.”

 

When asked about deploying free wi-fi across their entire fleet, Bastian said their current focus is outfitting their international aircraft with service, followed by regional and smaller aircraft. The carrier expects to have their trans-Atlantic fleet connected by the end of Summer 2024.

 

Keep up to date with Delta on the FlyerTalk forums.

 

Feature image courtesy: American Express

Source: frugal travel guy