Delta’s Amex Relationship Is Very Profitable for the Airline

Apr 13, 2018

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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.

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