Skift Take
Delta's new contract with American Express should generate massive revenue. It's another sign Delta is trying to stay far ahead of its peer airlines.
Delta Air Lines is promising investors it can earn up to $7 billion by 2023 from its new credit card contract with American Express, about double this year's haul. But it'll only see that much money if it meets certain performance goals.
What are they?
Several analysts tried Wednesday to get Delta executives to share more details about the new 11-year contract extension announced last week, but the airlines' leaders repeatedly declined to answer, citing confidentiality. "Let me suggest that we have pretty good optimism on getting to the $7 billion in that timeframe we gave," Delta CEO Ed Bastian said on the airline's first quarter earnings call on Wednesday.
In recent years, banks have rewarded airlines with increasingly richer contracts, hoping they can sway consumers to apply for their cards by dangling the promise of free travel, upgrades, and other perks. Delta, which probably has the strongest brand
