American Express and Delta Renew Industry-Leading Partnership, Lay Foundation to Continue Innovating Customer Benefits
April 02 2019 - 8:45AM
Business Wire
- 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 (NYSE:AXP) and Delta Air Lines
(NYSE:DAL) have signed an 11-year renewal extending their
exclusive Delta SkyMiles Credit Cards from American Express
portfolio through the end of 2029.
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the full release here:
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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. (Photo: Business Wire)
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.
ABOUT AMERICAN EXPRESS
American Express is a globally integrated payments company,
providing customers with access to products, insights and
experiences that enrich lives and build business success. Learn
more at americanexpress.com and connect with us on
facebook.com/americanexpress, instagram.com/americanexpress,
linkedin.com/company/american-express, twitter.com/americanexpress,
and youtube.com/americanexpress.
Key links to products, services and corporate responsibility
information: charge and credit cards, business credit cards, travel
services, gift cards, prepaid cards, merchant services, Accertify,
InAuth, corporate card, business travel, and corporate
responsibility.
ABOUT DELTA
Delta Air Lines (NYSE: DAL) is the U.S. global airline leader in
products, services, innovation, reliability and customer
experience. Powered by its 80,000 people around the world, Delta
continues to invest billions in its people, improving the air
travel experience and generating industry-leading shareholder
returns.
- Delta serves nearly 200 million people
every year, taking customers across its industry-leading global
network to more than 300 destinations in over 50 countries.
- Headquartered in Atlanta, Delta offers
more than 5,000 daily departures and as many as 15,000 affiliated
departures including the premier SkyTeam alliance, of which Delta
is a founding member.
- Through its innovative alliances with
Aeromexico, Air France-KLM, Alitalia, China Eastern, GOL, Korean
Air, Virgin Atlantic, Virgin Australia and WestJet, Delta is
bringing more choice and competition to customers worldwide.
- Delta operates significant hubs and key
markets at airports in Amsterdam, Atlanta, Boston, Detroit, Los
Angeles, Mexico City, Minneapolis/St. Paul, New York-JFK and
LaGuardia, London-Heathrow, Paris-Charles de Gaulle, Salt Lake
City, São Paulo, Seattle, Seoul-Incheon and Tokyo-Narita.
- Delta has been recognized as a
Fortune’s top 50 Most Admired Companies in addition to being named
the most admired airline for the eighth time in nine years.
Additionally, Delta has ranked No.1 in the Business Travel News
Annual Airline survey for an unprecedented eight consecutive years
and named one of Fast Company’s Most Innovative Companies Worldwide
for two consecutive years.
- As an employer, Delta has been
regularly awarded top honors from organizations like Glassdoor and
recognized as a top workplace for women and members of the
military. Delta CEO Ed Bastian was named among the “World’s
Greatest Leaders” by Fortune magazine in 2018.
- More about Delta can be found on the
Delta News Hub as well as delta.com, via @DeltaNewsHub on Twitter
and Facebook.com/delta.
Forward Looking Statements
This release includes forward-looking statements regarding
estimates, expectations, beliefs, intentions, projections or
strategies for the future within the meaning of the Private
Securities Litigation Reform Act of 1995, including Delta’s
expectations regarding its total benefit from the relationship and
American Express’ expectations regarding business and financial
performance, including its outlook for 2019. All forward-looking
statements involve a number of risks and uncertainties that could
cause actual results to differ materially from the estimates,
expectations, beliefs, intentions, projections and strategies
reflected in or suggested by the forward-looking statements. A
description of these and other risks and uncertainties can be found
in Delta’s and American Express’ respective Annual Reports on Form
10-K for the year ended December 31, 2018 and their other reports
on file with the SEC. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of April 2, 2019. Neither Delta nor American Express undertake any
obligation to update or revise any forward-looking statements.
With respect to Delta, these risks and uncertainties include,
but are not limited to, the cost of aircraft fuel; the availability
of aircraft fuel; the impact of fuel hedging activity including
rebalancing our hedge portfolio, recording mark-to-market
adjustments or posting collateral in connection with our fuel hedge
contracts; the performance of our significant investments in
airlines in other parts of the world; the possible effects of
accidents involving our aircraft; breaches or security lapses in
our information technology systems; disruptions in our information
technology infrastructure; our dependence on technology in our
operations; the restrictions that financial covenants in our
financing agreements could have on our financial and business
operations; labor issues; the effects of weather, natural disasters
and seasonality on our business; the effects of an extended
disruption in services provided by third parties; failure or
inability of insurance to cover a significant liability at Monroe’s
Trainer refinery; the impact of environmental regulation on the
Trainer refinery, including costs related to renewable fuel
standard regulations; our ability to retain senior management and
key employees; damage to our reputation and brand if we are exposed
to significant adverse publicity through social media; the effects
of terrorist attacks or geopolitical conflict; competitive
conditions in the airline industry; interruptions or disruptions in
service at major airports at which we operate; the effects of
extensive government regulation on our business; the sensitivity of
the airline industry to prolonged periods of stagnant or weak
economic conditions; uncertainty in economic conditions and
regulatory environment in the United Kingdom related to the exit of
the United Kingdom from the European Union; and the effects of the
rapid spread of contagious illnesses.
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AMERICAN EXPRESSElizabeth
Crosta212-640-6557Elizabeth.Crosta@aexp.comDELTACorporate
Communications404-715-2554
American Express (NYSE:AXP)
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