Dive Brief:
- Delta Air Lines’ loyalty ecosystem and premium experiences boosted the airline’s bottom line as it recorded $5 billion in pre-tax profit, executives said on a Q4 2025 earnings call Tuesday.
- Premium revenue grew 7% year over year, while total loyalty revenue grew 6% year over year. The carrier posted record total revenue of $14.6 billion, up 1.2% year over year, for the quarter and revenue of $58.3 billion for the full year, up 2.3% year over year, according to an earnings report.
- “Our loyalty ecosystem remains a powerful engine of enterprise value, anchored by the strength of the SkyMiles program, a highly engaged member base and our exclusive co-brand partnership with American Express,” said Glen Hauenstein, Delta’s outgoing president.
Dive Insight:
Delta continues to invest in its loyalty ecosystem and premium products to court business customers and those willing to pay for an upgraded experience.
Within its loyalty ecosystem, Delta’s co-brand credit card with American Express continued to grow, with more than 1 million card acquisitions for the fourth consecutive year.
Roughly one-third of SkyMiles members have a co-brand card, and the airline sees “significant runway ahead” as member engagement and penetration continue to rise, Hauenstein said.
“Co-brand cardholders are among our most valuable and satisfied customers, traveling more often and spending more on Delta,” CEO Ed Bastian said.
But pressuring this revenue stream is President Donald Trump’s call for credit card interest rates to be capped at 10%. Discussing the possibility during the Q&A portion of the call, Bastian cautioned that it could limit lower-income consumers from accessing credit cards.
“I think one of the big issues and challenges with the potential order is the fact that it would actually restrict the lower-end consumer from having access to any credit, not just what the interest rate they're paying, which would upend the whole credit card industry,” Bastian said.
The airline expects business and premium travelers to increase their travel.
“Business travel is showing signs of improvement as corporate confidence grows, with the most recent survey of corporate customers indicating that they expect to grow their travel spend this year,” Bastian.
The airline boasts the “No. 1 net promoter score among major airlines” and is the most on-time airline, according to Bastian.
Hauenstein leaves at the end of February. With his retirement, Delta veteran Joe Esposito has been named EVP and chief commercial officer, charged with sales and loyalty, among other things.
