Delta shares take off as it cashes in on loyalty and legroom
The airline said 2025 is positioned to be its best financial year ever.
Delta had a good 2024, but it says this year’s going to be even better.
In its most recent earnings report, released Friday, the airline said it’s positioned for its best financial year in a century. Delta Air Lines shares took off more than 9% premarket.
The fourth quarter saw premium and SkyMiles continue to pay off for Delta, which boasts the largest loyalty program in aviation. Diversified revenue, including premium seating and income from its co-branded credit card with American Express, contributed 57% of Delta’s total annual revenue last year.
Premium ticket sales climbed 8% on the quarter, compared to just a 2% bump in main-cabin ticket sales. Delta’s said the vast majority — about 85% — of seats it plans to add this year will be premium.
Delta’s Amex partnership continued to pay off, and the airline said it received about $2 billion from American Express on the quarter. Back-of-the-napkin math puts Delta’s total 2024 credit-card revenue at $7.4 billion, up from 2023’s $6.8 billion. Delta and American Airlines have more than doubled their revenue from selling miles to credit-card companies over the past eight years.
Earlier this week, Delta announced updates to its 120 million-member SkyMiles program, including dumping longtime ride-hailing partner Lyft for its much larger rival Uber and adding YouTube Premium to its in-flight options for members.
