Delta Air Lines, Uber Announce Announce Exclusive Partnership: Retail Mood Brightens
Once the partnership commences and the accounts are linked, Uber customers will have the opportunity to earn Delta SkyMiles when they ride and order. Delta Airlines is set to report its fourth-quarter (Q4) earnings on Friday.
FollowUber Technologies Inc. (UBER) and Delta Air Lines Inc. (DAL) announced on Tuesday that Uber will be the airline’s exclusive rideshare and delivery partner in the U.S. beginning this spring.
Delta shares were trading marginally in the green, while Uber’s stock was trading in the red in Wednesday’s pre-market session.
According to a CNBC report, this ends Delta Air Lines’ eight-year partnership with LYFT Inc.
Once the partnership commences and the accounts are linked, Uber customers will have the opportunity to earn Delta SkyMiles when they ride and order.
Delta SkyMiles members can earn one mile per dollar spent on UberX rides to and from airports, two miles per dollar spent on premium rides such as Uber Comfort and Uber Black, and three miles per dollar spent on Uber Reserve trips.
Members can also earn one mile per dollar spent on $40+ restaurant and grocery orders for the Uber Eats service.
Uber CEO Dara Khosrowshahi wrote that since 15% of all Uber ride bookings either begin or end at an airport, the firm believes Uber customers “will be racking up miles with Delta at the tap of a button.”
Following the development, retail sentiment on Stocktwits trended in the ‘bullish’ territory for both the stocks.
DAL’s Sentiment Meter and Message Volume as of 7:24 a.m. ET on Jan. 8, 2025 | Source: Stocktwits
UBER’s Sentiment Meter and Message Volume as of 7:24 a.m. ET on Jan. 8, 2025 | Source: Stocktwits
Retail chatter is indicating investors are optimistic about DAL shares’ prospects.
Meanwhile, one user believes Uber’s partnership with Delta “is a coup.”
Delta is set to report its fourth-quarter (Q4) earnings on Friday. Wall Street estimates the airline to report earnings per share of $1.76 on revenue of $14.17 billion.
The firm reaffirmed its December-quarter financial guidance during its Investor Day conference in November. Delta had earlier said it expects Q4 EPS in the range of $1.60-$1.85 and revenue to increase by 2%- 4% YoY versus estimates of 4.1% growth.
Notably, Delta shares have gained over 46% over the past year. Investors will watch out for the firm’s earnings and guidance for the year.
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