Delta and American Express: Co-Brand Momentum Drives Record Rewards Income

American Express is seeing stronger results as customers put more spend on its joint Delta Air Lines cards, and the carrier now projects the partnership will generate more than $9 billion in 2026.

Delta Air Lines Update: Spending Surge on Co-Brand Cards

On Friday’s second-quarter call, chief executive officer Ed Bastian praised the Amex loyalty card partnership tied to the airline’s program.

The June period marked a seventh straight quarter of double-digit growth in co-brand purchase volume, led by holders of the highest-priced products.

“With continued strength in new account openings and spend, we expect about $9 billion in economics this year—roughly 10% above 2025,” Bastian told analysts.

How the SkyMiles Arrangement Works

Under the co-brand structure, Amex prepurchases the airline’s loyalty currency; card members then earn SkyMiles through everyday transactions and redeem them for Delta flights and other program perks.

SkyMiles can also be earned and redeemed beyond Delta through partner activity—by crediting eligible flights on partner airlines to a SkyMiles account, and by using select non-airline partners (such as hotel and car rental partners) where SkyMiles earning is offered through the partner channel.

Earning and redeeming with partner airlines typically comes down to two steps: credit the partner flight to your SkyMiles account, then use your miles to book partner-operated award seats through Delta’s redemption options.

For airline partnerships, SkyMiles works across SkyTeam members and other partner airlines; examples include Air France, KLM, Korean Air, Aeromexico, Virgin Atlantic, LATAM, and WestJet.

In value terms, 30,000 SkyMiles is often estimated at roughly $360 using a simple 1.2-cent-per-mile benchmark (30,000 × $0.012), though actual value varies based on route, timing, and award pricing.

Card perks commonly associated with the Delta SkyMiles American Express lineup can include benefits such as a first checked bag free on Delta flights, priority boarding, and (on higher-tier products) a companion certificate. Card spending can also help with Medallion status by contributing toward Medallion Qualifying Dollars under Delta’s status framework, with thresholds and eligibility depending on the specific card and how it is used.

American Express in New York and Delta in Atlanta have collaborated for roughly three decades, focusing on affluent travelers who often choose the premium Reserve tier, which carries a $650 annual fee, while other versions come with lower—or no—annual fees.

Bastian said the airline prizes Amex because the two companies approach the business in similar ways.

We target the same customer set and our strategies reinforce each other, producing compounding gains over the years.

Travel Demand and Earnings Read-Through

The upbeat tone from Delta comes despite worries earlier this year that the war involving the United States and Israel against Iran would sap travel demand. Any drag has been sporadic as the stop-start conflict since February has evolved, with another ceasefire ending last week.

Delta’s commentary may signal an upside for card issuers’ June-quarter results, with American Express reporting on July 24.

Bank reports on Tuesday also pointed to healthy card activity. Cantor Fitzgerald analyst Ramsey El-Assal cited a sequential pickup in total purchase volumes and called the backdrop constructive for Visa and Mastercard, despite ongoing macro and geopolitical uncertainty.

Partnership Scope and Timeline

Although Amex works with international airlines such as Cathay Pacific and British Airways, Delta is its only United States co-brand airline partner.

“A major benefit of the relationship is that we are exclusive with one another,” Bastian said.

The companies last renewed their co-brand agreement in 2019, and it runs through 2029. They are expected to seek another extension if the arrangement continues to bolster results. American Express operates both a card network and a bank that issues the products.

Growth Plans and Strategic Alignment

Delta expects to add about 1 million more American Express cards in 2026, Chief Commercial Officer Joe Esposito said on the earnings call.

• Delta SkyMiles® Blue American Express Card
• Delta SkyMiles® Gold American Express Card
• Delta SkyMiles® Platinum American Express Card
• Delta SkyMiles® Reserve American Express Card

“American Express is a strong partner, and our strategies are closely aligned on where and how we grow,” Esposito told analysts, calling the tie a critical element in the carrier’s domestic and international expansion planning.

Esposito reiterated that the teams remain tightly aligned on growth priorities.