Delta earns $1.9B from Amex in Q2 2024.

In the second quarter of 2024, Delta Air Lines earned a whopping $1.9 billion from its partnership with American Express, a 9% year-over-year increase. This revenue stream is expected to continue outpacing the credit card industry, making it a significant source of income for the airline. With nearly one-in-three Delta SkyMiles flyers carrying a co-branded American Express card, the loyalty program plays a crucial role in this partnership.

Delta’s Loyalty Strategy: Achieving a $10 Billion Goal

Delta’s loyalty program, SkyMiles, is a major contributor to the airline’s revenue, generating 30% of its total revenue. The carrier aims to achieve a long-term remuneration goal of $10 billion, and the growth in new card acquisitions and premium card mix indicates that they are on the right track.

The airline attributes its success to its premium experience, which includes customer service, premium seating, and on-time performance. This strategy has helped Delta attract business travelers and secure partnerships with top credit card providers like American Express.

Impact on SkyMiles Members

Delta’s strong partnership with American Express benefits SkyMiles members in several ways. First, the increased revenue from American Express cards allows Delta to invest in improving its products and services, which ultimately enhances the overall travel experience for SkyMiles members.

Second, the growing popularity of co-branded American Express cards among younger travelers suggests that the loyalty program will continue to attract new members and deepen engagement beyond flights. This trend is essential for the long-term success of the SkyMiles program and its members.

Finally, the shift towards a more premium card mix means that SkyMiles members can enjoy more valuable rewards and benefits from their co-branded American Express cards. As Delta continues to focus on providing a premium experience, SkyMiles members can expect more perks and incentives in the future.

Conclusion

Delta’s partnership with American Express is a win-win situation for both parties. The airline benefits from a significant source of revenue, while SkyMiles members enjoy improved products and services and more valuable rewards and benefits. As Delta works towards its $10 billion remuneration goal, SkyMiles members can look forward to even more perks and incentives in the future.

FAQs

1. How much revenue did Delta earn from American Express cards in Q2 2024?
   Delta earned $1.9 billion from American Express cards in Q2 2024, a 9% year-over-year increase.
2. What percentage of Delta’s total revenue is generated by its loyalty program?
   Delta’s loyalty program generates 30% of its total revenue.
3. Why is Delta’s partnership with American Express beneficial for SkyMiles members?
   Delta’s partnership with American Express allows the airline to invest in improving its products and services, attract new members, and offer more valuable rewards and benefits to SkyMiles members.
4. What is Delta’s long-term remuneration goal for its loyalty program?
   Delta’s long-term remuneration goal for its loyalty program is $10 billion.
5. How is Delta’s loyalty program shifting towards a more premium card mix?
   Delta’s loyalty program is shifting towards a more premium card mix by attracting younger travelers and offering more valuable rewards and benefits to co-branded American Express cardholders.