“Our growing loyalty ecosystem is one of the most important drivers of our structural durability,” Bastian said during the call.
Bastian highlighted a Delta-American Express partnership that has strong momentum and is expected to delivery remuneration of over $9 billion this year, the high customer satisfaction ratings attained by Delta’s co-brand cards and a new strategic relationship with Hyatt that brings more value to Delta customers.
Delta’s loyalty revenue grew nearly 20% year over year during the quarter, Joe Esposito, executive vice president and chief commercial officer at Delta Air Lines, said during the call.
“Our loyalty ecosystem is growing in scale and value,” Esposito said. “SkyMiles membership is growing faster than capacity, and members are engaging more with Delta in the air and beyond the flight.”
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Esposito pointed to brand partnerships with Uber and Starbucks that are seeing growth driven by the deeper engagement of SkyMiles members.
PYMNTS reported Oct. 5 that Delta is among the airlines that have made loyalty points more liquid by giving customers more choices over when and how much of their accumulated rewards to spend.
Bastian said during the call that consumers, and especially those of younger generations, are drawn to loyalty programs because they “want to feel that they have some level of ownership in the experience and the relationship at a deeper level.”
Delta Air Lines saw these results from its loyalty program during a quarter in which its revenue increased 16% year over year and reached $17.6 billion, which was a record high for the company during a September quarter, according to a Friday press release.
Delta Air Lines saw broad strength in demand for air travel during the quarter. Main cabin unit revenue was up 17% year over year. Corporate sales were up by double digits in all sectors, with the banking, technology and energy sectors leading the way, per the release.
“Looking at the current environment, demand remains strong, supported by a secular shift in consumer behavior,” Bastian said during the call. “The top 40% of U.S. households, which make up the majority of Delta’s customer base, are nearly $40 trillion wealthier than they were just a few years ago and increasingly prioritizing experiences, including travel.”
“At the same time, air travel remains one of the best values in the consumer economy, with airfare still well below cumulative inflation over the last several years,” Bastian said.
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