Delta and American Express Revamp Their Credit Cards

October 9, 2019

American Express Co., after renewing its long-term partnership with Delta Air Lines Inc. earlier this year, is raising incentives and increasing the annual fee for many of its co-branded cards.

American Express said in a statement on Monday that the annual fee for six Dharma cards will rise. Platinum cards for consumers and small businesses will increase from $195 to $250, while reserve cards will add $100 to $550. The gold card will rise slightly from $95 to $99.

This move brings high-end Dharma closer to American Express’s own premium products and may put pressure on other airline-bank alliances such as JP Morgan Chase and United Airlines Holdings. Card issuers across the industry are attracting consumers. American Express (Amex) bets that high-end customers will focus on rewards rather than higher annual fees.

Eva Reda, head of Amex’s co-branded business, said: “The added value of these products is so high that I don’t think we have to worry about the increase in fees.” “This is a major update to the entire Delta Amex portfolio.”

Delta Air Lines is the largest co-brand partner of American Express, accounting for 8% of corporate card consumption and 20% of corporate loans. The airline said it expects the partnership to contribute nearly 7 billion to its revenue by 2023. Dollar. The two companies agreed to extend their partnership to 2029, while American Express told investors that the renewal would add $200 million in marketing and business development costs to issuers this year.

Sandeep Dube, Delta’s vice president of customer engagement and loyalty, said in an interview: “We hope that these cards are absolutely effortless for existing portfolio customers.” “Our added revenue far exceeds the increased revenue. ”

American Express (Amex) CEO Steve Squeri touted Delta’s partnership in April, saying: “We will develop this thing so big, and each other There will be so much DNA between them, so that the renewal time will come.” Long-term negotiations.

This strategy has begun to take shape: the updated Delta Reserve card will now give users access to Amex’s Centurion Lounges, which is the first time Amex has provided this access on a co-branded card.

American Express (Amex) and Delta (Delta) are strengthening their product range:

They increased the rewards of spending US dollars and platinum cards in restaurants and supermarkets.

They also provide a TSA Pre or Global Entry fee credit for their Delta Reserve consumer and small business cards.

Gold for small businesses will provide additional incentives for advertising and transportation expenses.