AmEx Climbs After Pledge That It Can Offset Higher Delta Costs
- Costs jumped 11% in quarter as it renewed Delta partnership
- Shares rise as company keeps annual profit target unchanged
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American Express Co. is sticking to its guidance for full-year profit, despite having to ante up to keep its largest card partner happy.
The credit-card giant said costs tied to marketing and business development will increase by $200 million this year as a result of its renewed card partnership with Delta Air Lines Inc. Even with the higher expenses, the firm reiterated that its 2019 adjusted earnings will be between $7.85 and $8.35 per share.