Popular legacy airline captures premium spend because of American Express perks

United Airlines just posted a quarter that shows how much money follows loyalty. 

And a big piece of that story runs through American Express, even though Amex doesn’t co-brand a credit card with United (UAL) at all.

United’s MileagePlus card is issued exclusively by Chase, which extended its partnership with the airline through 2029. 

Amex (AXP) works differently.

It runs a parallel system of perks, credits, and point transfers that pushes its wealthy cardholder base toward United, without ever putting the United name on a piece of plastic.

How Amex funnels spend to United

Holders of the Platinum Card and Business Platinum Card from American Express can pick United as their designated airline. 

That choice unlocks a $200 annual credit for items such as checked bags, United Club passes, and change fees, according to American Express.

Business Platinum cardholders receive a 35% rebate on Membership Rewards points redeemed for economy fares booked through Amex Travel, according to data from Upgraded Points.

Related: Morgan Stanley sees travel credit cards testing banks’ edge

Amex also runs rotating offers. 

Cardholders sometimes get $75 to $100 back, or 7,500 to 10,000 bonus points, just for spending $500 or more directly on airline platforms.

And while Membership Rewards points can’t transfer straight into a MileagePlus account, Amex partners like Air Canada Aeroplan, Avianca LifeMiles, ANA Mileage Club, and Singapore KrisFlyer let Amex loyalists convert points into United seats.

None of this makes Amex an official partner. But together, it builds a second channel of premium spend flowing toward United, running alongside the primary Chase relationship.

The numbers back up the strategy

United’s second quarter results show this two-pronged approach working. 

On the July 16 earnings call, Chief Commercial Officer Andrew Nocella said new co-branded credit card accounts hit a second quarter record, up 22% year over year. 

• Card spend rose 14%, and MileagePlus enrollments climbed 9%, outpacing capacity growth by five points.
• Loyalty revenue grew 11.3% for the quarter. Nocella noted that number understates the real momentum. 
• Once you strip out a one-time accounting adjustment, loyalty revenue growth was above 13%.

Nocella explained:

“I think the credit card space is both interesting, complicated, and also full of a lot of upside for United Airlines as we grow and take advantage of these opportunities as we grow our business.”

Nocella added that United is now in the sunset phase of its current Chase deal and expects to start renegotiating before long, building on roughly 18 months of research that is already reshaping how the program rewards spending.

Premium travel is doing the heavy lifting

Loyalty isn’t the only bright spot. Here’s what United Airlines reported in Q2

• Total revenue reached $17.7 billion for the quarter, up 16% year over year. 
• Premium cabin revenue jumped 16.4%, and revenue per seat mile in the Polaris and Premium Plus cabins rose 13.6%, outpacing the main cabin’s still solid 11.5% gain.
• Close-in business travel bookings jumped 30%, led by tech, financial services, and professional services clients. United gained corporate market share in every one of its seven hubs.

CFO Mike Leskinen reported earnings per share of $1.99, at the top of guidance, despite a $2.3 billion year-over-year jump in fuel costs.

New planes are built for premium flyers

United is backing up its loyalty push with hardware. The airline is rolling out free Starlink WiFi across nearly 1,000 aircraft by the end of the year, and satisfaction scores on those planes are more than double those of older WiFi systems.

About 100 premium-configured Airbus A321XLR and Coastliner jets are ramping up through 2027. 

United is also growing its Boeing 787-9 fleet, which features the Polaris Studio suite, and the long-delayed 737 MAX 10 is now expected to arrive in mid to late 2027.

More Airlines:

• Another airline cancels flights until August, offers some refunds
• Another airline will be dissolved, all flights canceled
• Airline shuts down, all flights grounded after accident

UAL management described the goal in simple terms and said the company is rewriting what a premium global airline looks like, every single day.

Given the sharp jump in fuel prices in early July, United tightened its full-year earnings guidance to the top of its previous range, between $9 and $11 per share. 

The airline also raised $3.7 billion in new debt to stay flexible, closing the quarter with $19.6 billion in available liquidity.

The bigger picture for UAL stock

Put it all together, and United is pulling premium spend from two directions at once. Chase remains the structural backbone of MileagePlus.

Amex, without ever branding a card, gives its own affluent customers plenty of reasons to route spending and loyalty toward United anyway.

Related: United Airlines stark warning could make your next flight more expensive