Originally Posted by
Hedley
I'm too lazy to look it up, but do any of you have hard data from financial reports stating what percentage of a legacy's revenue comes from credit cards vs the operation as a whole? Is the operation actually running at a loss that is enabled by credit card sales, or is this just a popular narrative that is blindly repeated? My guess is that the data will show that while a significant source of revenue does come from the sale of credit cards, that revenue is just a piece of a multifaceted stream produced by a very large network.
Delta has the most lucrative credit card deal. From 4q earnings report “Remuneration from American Express for the December quarter was $1.7 billion, approximately 11 percent higher than the December quarter 2022, and full year remuneration of $6.8 billion grew 22 percent year-over-year. For the full year, diversified revenue streams, including Loyalty, Premium, Cargo, and MRO comprised 55 percent of total revenues.”
In that 4q income was 1.3b and 5.3b for all of 2023. Delta renegotiated an 11 yr Amex deal in 2018 and united renegotiated a less lucrative deal in 2020. United income in the 4q was .8b and 3.3b for 2023. They are much more tight lipped about their chase deal.