The cash runway doesn't look good... Pun 100% intended. Delta, like other airlines, is strapped for cash. Domestic travel is down ~60% from last year and daily costs are still sky-high (Delta's losing $27M/day). The government's $25B in airline bailout funds runs out on October 1st, and mass layoffs are expected. As a cherry on top of the cash-crunched sundae, US airlines just permanently scrapped their $200 change fees for domestic flights. Sooo...
Please explane... Airlines earn money from frequent-flier programs by selling miles to banks and retailers that award them to customers. American Express is able to drop you those sweet travel rewards points since it bought them en masse from airlines. And each time you swipe your Delta co-branded card, Delta gets a little money from AmEx.
Delta is a credit card company now (more than ever)... Few things drive loyalty like the metallic traveler status. In 2019, $4B in sales from Amex made up 8% of Delta's revenue. Delta expects annual AmEx sales to hit $7B by 2023. Delta is also AmEx’s largest co-branded account, making up 20% of AmEx balances worldwide. Delta’s passenger sales fell 60% in the 1st half of 2020 — But sales to American Express dropped just less than 5%. With its passenger biz decimated, Delta's leaning into cards more than ever.