Delta Air Lines has made this announcement:
- New agreement sets stage to create industry’s most valuable co-brand portfolio; extends relationship through 2029
- Co-brand credit cards, Delta Sky Club® access and the Membership Rewards® program remain key features
American Express and Delta Air Lines have signed an 11-year renewal extending their exclusive Delta SkyMiles Credit Cards from American Express portfolio through the end of 2029.
The long-term agreement will leverage shared strengths to deliver best-in-class value to customers, while continuing existing features, including:
- Ongoing investment in industry-leading benefits for Delta SkyMiles Credit Cards from American Express
- Complimentary access to the award-winning network of Delta Sky Clubs around the world for Delta Reserve Card Members and Platinum Card® Members from American Express
- Delta participation in the Membership Rewards program from American Express, allowing those points to transfer into the SkyMiles® Program
- Delta as an American Express Card-accepting merchant
As the two companies work together, Delta expects its benefit from the relationship to double to nearly $7 billion annually by 2023, up from $3.4 billion in 2018, strengthening Delta’s increasingly diversified revenue stream.
American Express expects attractive growth economics over the term of the agreement and affirmed its previous guidance for 2019 of FX-adjusted revenue growth in the 8-10 percent range and adjusted earnings per share between $7.85 and $8.35, subject to any contingencies and legal settlements1. The economics of the new terms are not expected to have a material effect on the first quarter results of American Express.
Since 1996, Delta and American Express have offered a portfolio of co-branded products that allow eligible Card Members to earn miles and receive other Delta-related benefits such as first checked bag free, Main Cabin 1 priority boarding and Delta Sky Club access. In 2018, the companies added 1 million new Delta SkyMiles Credit Card Members while spending across the card portfolio grew by double digits. Delta is the largest co-brand partner for American Express and its only U.S. airline consumer co-brand partner.
1 American Express’ 2019 guidance for FX-adjusted revenue growth and adjusted EPS subject to contingencies and legal settlements are non-GAAP measures. FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (i.e., assumes FY’19 foreign exchange rates will apply to FY’18 results when calculating year-over-year growth). A reconciliation to EPS guidance on a GAAP basis is not available without unreasonable efforts.