American Express and Delta Renew Industry-leading Partnership, Lay Foundation to Continue Innovating Customer Benefits
Wednesday, April 3rd, 2019
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
“Delta and American Express are two great consumer brands that share a passion for service to our customers, employees and communities. Our shared trust helps us work together to find innovative ways to offer greater opportunity to our customers as we grow our long-term partnership,” said Delta CEO Ed Bastian. “Enhancing customer loyalty is at the heart of our business. Our partnership with American Express provides a competitive advantage as we deliver substantial value to our customers and owners.”
“This is a true partnership steeped in common values, strong relationships and 23 years of history,” said Stephen J. Squeri, Chairman and CEO of American Express. “We are thrilled to extend our agreement in a way that combines so many of American Express’ unique assets and capabilities with Delta's large and engaged customer base to drive growth for both companies. We will be working together across our card, merchant and travel businesses to expand the partnership and believe this continues to be a very attractive platform for growth that delivers substantial benefits to our customers, our partners and our shareholders.”
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.
The airline continues to invest in the SkyMiles program, named a Best Travel Rewards program by U.S. News & World Report for the second year, while leading the industry when it comes to launching innovative ways to use miles on more Delta offerings, the latest of which is post-purchase upgrades. This pairs with the increased ability to earn miles on everyday activities through partnerships with brands customers love like Lyft and Airbnb. And, the award-winning Delta Sky Club experience continues to be a reason travelers choose to fly Delta.
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.