Hey there, aspiring frequent flyer! Have you ever wondered about the secret engine that powers Delta Air Lines? While planes, fuel, and tickets are the obvious answers, there's another, often overlooked, behemoth behind the scenes: their partnership with American Express. It's not just a credit card deal; it's a financial powerhouse that generates billions of dollars annually for the airline.
This isn't your average corporate sponsorship. This is a deep, symbiotic relationship that has grown over decades to become one of the most profitable partnerships in the travel industry. If you want to understand how it works and what it means for your wallet and your travels, you've come to the right place.
Let's dive in and break down this lucrative collaboration.
Step 1: Get a Glimpse of the Gigantic Numbers
Ready to have your mind blown? The first step to understanding this partnership is to look at the sheer scale of the revenue involved. These aren't just "extra" profits—this is a foundational part of Delta's business model.
The Bottom Line: In a recent quarterly report, Delta announced that its American Express partnership delivered an astounding $2 billion in revenue in a single quarter. Yes, you read that right. In just three months. This figure represents a 10% increase year-over-year, showcasing the partnership's incredible growth and resilience.
A Billion-Dollar Bet: The two companies have been partners since 1996, but they doubled down on their relationship in 2019 with an 11-year renewal. At the time, Delta projected that the annual revenue from this deal would double to nearly $7 billion by 2023. They weren't far off; their loyalty program, largely driven by Amex, now generates close to $10 billion in total revenue annually. This is a staggering amount of money for any company, let alone an airline.
More Than Just Cards: This partnership is a cornerstone of Delta’s loyalty strategy. It’s a "high-margin" revenue stream, meaning it brings in significant profits without the high costs associated with operating flights (like fuel, maintenance, and staff). This financial stability allows Delta to reinvest in its planes, its service, and, most importantly, its SkyMiles program.
So, how does a credit card deal generate so much cash? Let's break down the mechanics.
Step 2: Understand the Three Pillars of Revenue
The cash flow from American Express to Delta isn't from a single source. It's a carefully constructed system with three primary components that work together to create a formidable revenue stream.
Sub-heading 2.1: The Purchase of Miles
This is the most significant piece of the puzzle. Think of it this way: Delta sells its SkyMiles to American Express at a negotiated wholesale price. When you, the cardholder, use your Delta SkyMiles Amex card to make a purchase—whether it's on a flight, at a grocery store, or for anything else—you earn miles. But where do those miles come from? American Express buys them from Delta and then awards them to you.
The more you spend, the more Delta makes. Every dollar you put on your card translates into more miles that Amex has to purchase from Delta. This creates a powerful incentive for both companies to encourage high spending on the cards.
A lucrative cycle. Amex earns its money through merchant fees (a percentage of every transaction) and interest charges, and it uses a portion of that revenue to buy the miles from Delta. This is the financial engine that fuels the entire partnership.
Sub-heading 2.2: The Annual Fees
While the purchase of miles accounts for the bulk of the revenue, the annual fees you pay on your Delta SkyMiles credit card are another crucial component.
Not all fees are created equal. The annual fee for a basic Delta SkyMiles® Blue American Express Card is much lower than the fee for the premium Delta SkyMiles® Reserve American Express Card. However, the higher annual fees on the premium cards often come with more exclusive perks, like complimentary lounge access, that are extremely valuable to frequent travelers.
A valuable trade-off. You pay an annual fee for the benefits, and Amex and Delta split a portion of that fee. In exchange, you get tangible value, such as a free checked bag (a perk that alone can save you over $100 on a single round-trip flight), priority boarding, and credits for in-flight purchases.
Sub-heading 2.3: Delta as a Merchant
This is a simpler, but still important, part of the relationship. American Express is not just the issuer of the co-branded cards; it is also a payment network. Every time a customer pays for a Delta flight, a checked bag, or an upgrade using any American Express card, Delta pays a merchant fee to Amex, just as it would to any other credit card network like Visa or Mastercard.
The exclusive bond. This is where the exclusivity of the partnership really comes into play. While you can use other cards to pay for Delta flights, the vast marketing efforts and cardholder benefits from the Amex partnership create a strong preference for using the co-branded cards. This means more Amex transactions and more merchant fees flowing between the two companies.
Step 3: See How the Partnership Benefits You
So what does this all mean for the consumer? This massive financial partnership is what allows Delta to offer a truly competitive and enticing loyalty program. Without the billions of dollars from American Express, Delta would not be able to offer the extensive perks and benefits that make its SkyMiles program so popular.
Sub-heading 3.1: The Power of Medallion Status
The partnership is now deeply intertwined with how you earn Medallion Status, Delta's elite loyalty tiers. For years, spending on the co-branded cards could help you qualify for status, and with recent program changes, this link is even stronger.
MQDs, a new currency. Delta now uses Medallion Qualification Dollars (MQDs) as the primary way to earn status. The new system allows you to earn MQDs not only through flights but also through your spending on the premium Amex cards. This makes it possible to earn status without even flying frequently. This is a direct result of the Amex partnership.
Sub-heading 3.2: The Cards for Every Kind of Flyer
The different Delta SkyMiles Amex cards cater to a wide range of travelers, from the occasional vacationer to the hardcore road warrior. The variety is a testament to the partnership's focus on attracting and retaining all types of customers.
Delta SkyMiles® Gold American Express Card: This is a great entry point. It's often the card that offers the much-coveted welcome bonus miles and the free first checked bag, a benefit that can save families hundreds of dollars a year.
Delta SkyMiles® Platinum American Express Card: The next step up, this card comes with valuable benefits like an annual companion certificate, which can be used for a free or discounted flight for a travel partner.
Delta SkyMiles® Reserve American Express Card: The top-tier offering for the most loyal flyers. It provides a more generous companion certificate, and, most importantly, complimentary access to Delta Sky Clubs and Centurion Lounges when you're flying with Delta. The value of this benefit alone often far outweighs the card's annual fee.
This is why understanding the relationship is so important. The benefits you enjoy are a direct result of the billions of dollars that flow from Amex to Delta. It's a well-oiled machine that creates a loyal customer base for the airline, a profitable product line for the credit card company, and a wealth of perks for you, the traveler.
10 How-To FAQ Questions
How to find the right Delta American Express card for me? To find the right card, assess your travel habits. If you fly Delta just a couple of times a year, the Blue or Gold card might be a perfect fit. For more frequent travelers who value lounge access and companion tickets, the Platinum or Reserve cards offer significantly more value.
How to earn the most miles on my Delta American Express card? Focus your spending on categories that offer bonus miles, such as purchases directly with Delta, at restaurants, and at U.S. supermarkets. Also, take advantage of welcome bonus offers when you first get the card, as these can provide a massive boost to your SkyMiles balance.
How to get free checked bags with a Delta Amex card? Simply hold a Delta SkyMiles® Gold, Platinum, or Reserve American Express Card, and your first checked bag is free on Delta flights for you and up to eight other passengers on the same reservation.
How to access Delta Sky Clubs with my Amex card? With a Delta SkyMiles® Reserve American Express Card, you get complimentary access to Delta Sky Clubs when you are flying on a same-day Delta flight. The American Express Platinum Card also offers lounge access.
How to use my companion certificate from a Delta Amex card? An annual companion certificate, a key benefit of the Platinum and Reserve cards, is typically issued after your card renewal. You can redeem it on delta.com for a round-trip flight for you and a companion, with your companion's base fare being free.
How to link my credit card to my SkyMiles account? When you apply for a Delta SkyMiles American Express card, you are required to provide your SkyMiles number. If you don't have one, a new account will be created for you and automatically linked to your new card.
How to use my miles for flights? You can use your SkyMiles to book "Award Travel" directly on delta.com or the Fly Delta app. The number of miles required for a flight is dynamic, so it's a good idea to check different dates and routes to find the best value.
How to earn Medallion Qualification Dollars (MQDs) with a credit card? With the premium Delta SkyMiles American Express cards, you can earn MQDs based on your spending. Check the specific card's benefits, as the rate at which you earn MQDs per dollar spent varies between the Platinum and Reserve cards.
How to benefit from the partnership if I don't have a co-branded card? Even without a co-branded card, you still benefit indirectly from the partnership. The billions of dollars in revenue allow Delta to invest in a better fleet, improved airport terminals, and enhanced services, which ultimately benefits all customers.
How to know if a Delta Amex card is worth the annual fee? To determine if a card is worth it, add up the value of the benefits you will actually use. For example, if the free checked bag benefit saves you $120 a year and you use the annual companion certificate for a flight that would have cost $300, the total value you receive likely outweighs the card's annual fee.
