Key Highlights

  • Delta's American Express co-brand partnership has posted double-digit card spend growth for seven consecutive quarters.
  • Delta expects $9 billion in American Express remuneration this year, up 10% over the prior year.
  • Delta's MRO business is on track for approximately $1.2 billion in revenue this year, up nearly 50%, with management targeting more than a doubling over the next several years.

Beyond ticket sales, two of Delta Air Lines' less conventional revenue streams are increasingly shaping how investors should think about the airline's long-term earnings profile: its American Express co-brand partnership and its maintenance, repair, and overhaul, or MRO, business. Both segments have shown sustained growth that stands apart from the cyclicality typically associated with airline revenue.

The American Express relationship has been a particular source of strength, with card spend growing at double-digit rates for seven consecutive quarters. That consistency is notable in an industry where discretionary consumer spending can swing meaningfully with economic conditions, suggesting the co-brand card has built genuine loyalty-driven staying power among Delta's customer base rather than relying on one-off promotional spikes.

That momentum is expected to translate into $9 billion in remuneration from American Express this year, up 10% over the prior year. Remuneration of this scale represents a substantial, high-margin revenue stream that is largely decoupled from the direct costs of flying passengers, including fuel and crew expenses, giving Delta a valuable buffer against the operational cost pressures that periodically weigh on core airline profitability.

Delta's MRO business tells a similarly compelling growth story from a different angle. The segment remains on track to generate approximately $1.2 billion in revenue this year, up nearly 50% from the prior year, while delivering low double-digit margins. Management has set its sights considerably higher, targeting more than a doubling of MRO revenue over the next several years, alongside continued margin expansion.

The strategic logic behind prioritizing both businesses is clear: as core airline capacity growth remains deliberately modest, at roughly 1% in recent quarters, Delta is leaning on these adjacent revenue streams to drive a larger share of overall earnings growth. Card remuneration and third-party maintenance work both carry the advantage of generating revenue with comparatively limited additional capital investment relative to expanding the airline's flying operations. For investors, the growing contribution from these two segments suggests Delta's earnings quality — and its resilience to fuel price volatility and travel demand cyclicality — is improving as its revenue base diversifies beyond the traditional confines of passenger ticket sales.