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Will Lyft Partnership Boost Delta’s Revenue Growth?

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Lyft partnership

In another innovative effort, Delta Air Lines (DAL) has partnered with Lyft. Delta’s SkyMiles members can earn frequent flier miles for every ride they take with Lyft. Users will get one mile for every dollar they spend on Lyft rides, and there is no upper limit on mileage earnings. Additionally, as a launch bonus, users can also earn miles for Lyft rides to and from the airport until August. New Lyft users will also get a $20 credit.

All users have to do to earn frequent flier miles with Delta is link their SkyMiles and Lyft accounts. According to current SkyMiles policy, the miles earned don’t have an expiration date and can be used to travel on Delta Air Lines to 1,000 destinations around the world.

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Partnership benefits

Airline miles are a great incentive for customers. Through this partnership, Lyft can attract new customers, increase existing customers’ usage, and boost customer spending.

Delta Air Lines also stands to benefit significantly from this partnership. The immediate benefit for Delta is the potential to bring in new customers. Also, access to Lyft’s huge database could help Delta to attract customers from rivals like Southwest Airlines (LUV), American Airlines (AAL), and United Continental (UAL).

Investors can gain further exposure to Delta Air Lines stock by investing in the First Trust Nasdaq Transportation ETF (FXR), which invests 4.2% of its portfolio in the airline. Next, we’ll take a look at Delta Air Lines’ profitability.

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