Delta Air Lines (DAL) has announced a new loyalty program partnership with Uber (UBER), allowing Delta SkyMiles members to earn miles on Uber rides and Uber Eats orders within the U.S. This partnership marks the end of Delta’s eight-year-long relationship with Lyft (LYFT).
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According to the deal, members will earn one mile per dollar spent on UberX rides to and from airports, two miles on premium rides such as Uber Comfort and Uber Black, and three miles on Uber Reserve trips. In addition, members can earn one mile for every dollar spent on Uber Eats orders over $40.
The change in ride-hailing partners reflects both companies’ efforts to broaden their customer reach and improve travel experiences. Uber’s expanding network of drivers and riders allows Delta to connect with a larger audience and strengthen its loyalty program.
Delta Grows Through Partnerships
Delta’s strategy to expand its reach through strategic partnerships is paying off. The airline has collaborated with companies like coffee chain Starbucks (SBUX), car rental services provider Hertz Global (HTZ), entertainment company Ticketmaster, and credit card provider American Express (AXP). Importantly, Delta generated about $7 billion in revenue in 2024 due to its partnership with American Express.
Regarding DAL’s partnership with Uber, it reflects the growing importance of ride-hailing services in the travel industry. As air travel continues to rebound, such partnerships are crucial for attracting and retaining customers.
DAL to Report Q4 Earnings on January 10
Investors should note that DAL is scheduled to release its fourth-quarter earnings report on January 10, 2025.
Currently, Wall Street analysts expect Delta to post revenue of $14.65 billion in Q4, up 3% from the year-ago quarter. Meanwhile, the company is expected to report earnings of $1.76 per share, up from $1.28 in the prior-year quarter.
Is DAL a Good Stock to Buy?
Turning to Wall Street, DAL has a Strong Buy consensus rating based on 17 unanimous Buys assigned in the past three months. At $78.96, the average Delta Air Lines price target implies 29.06% upside potential. Shares of the company have gained 21.22% over the past three months.
