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Their partnerships are probably just as profitable if not more than their actual airline operations
Moreso. As I pointed out, they’d barely be a going concern just on flying meatbags around the world.
I’ll go first. On a purely points basis, I think I cost them. I don’t have a Delta branded CC, but I have an Amex Plat and utilize the SkyClub weekly, sometimes 2x weekly. It would depend how they get paid by Amex.
On the other hand, I do fly Delta in the first place for almost all my flights, and I book using my Amex platinum. So there’s that. Curious to know if anyone has any insight on what is probably a tangled web of P/L
I also wonder if Amex gives them a break on the transaction cut they take
oh cool. what else can you share? a specific question i have is how the airline club fee is paid for by AMEX and whether delta directly gets a cut of the annual card fee as reimbursement for this and also for co-branding the card, or maybe it’s not so cut and dry. for instance, is that something fixed by the price of the card (e.g. $100 of each amex platinum goes directly to delta for skyclub usage on top of the $50 of annual fee for all annual fee cards that goes directly to delta for co-branding), or somehow else wrapped into the total package?
So, you may reduce your value to Amex, but Amex pays Delta for the cost of miles. Usually, the price per mile to Amex is higher than the cost, so each mile generates profit for Delta. Furthermore, those miles have an actuarial devaluation that further reinforces that margin.
Finally, Amex likely provides Delta with a partner spend budget. It could be >$20M a year to do joint marketing for the card, or even just fun money.
Net, Delta will always win. They’ve a goal cost per Mile, probably. If the cost gets too high, they’ll change their chart to net it out