Delta's Amex Relationship Is Very Profitable for the Airline
The partnership between Delta Air Lines and American Express is proving to be extremely profitable, at least for Delta's bottom line.
Delta announced higher-than-expected earnings in its report for the first quarter of 2018 on Thursday, mostly due to revenue from passengers and its cargo operations. But, the carrier's Amex partnership also helped its revenue numbers. With more than one million credit card accounts opened and $3 billion in revenue in 2017, the Delta Amex cards helped the airline boost earnings significantly.
Delta, the second-largest US airline, reported record-high revenues of $9.76 billion for the first quarter of 2018.
"The idea that selling miles to American Express contributes upwards of 35% of Delta's earnings and closer to 50% for American Airlines – I think that's a really misunderstood and underreported part of this industry," Stifel Analyst Joseph Denardi told FOX Business.
Delta President Glen Hauenstein said Delta's relationship with Amex "has been growing at a double-digit clip," in the company's earnings call.
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Choose to earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases |
Pros
- Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.