Starbucks and Delta Air Lines tie royalty rewards programs together

Yahoo Finance Live checks out Starbucks shares following headlines of the coffee chains new partnership with Delta Air Lines.

Video Transcript

DAVE BRIGGS: My play is a twofer. It's Delta Airlines and Starbucks. You got to love coffee when you're flying. What's the common thread here, though? Beyond that, the two are linking their loyalty programs in order to boost sales. Starting today, once you connect the accounts, Delta SkyMiles members can earn one mile for each dollar spent at Starbucks. Members will also earn double stars on Starbucks rewards when making purchases at participating Starbucks on days when flying Delta. I know that sounds confusing. Check your email if you're a member of either. They've already emailed you.

Through the end of the year, SkyMiles members can earn 500 miles if they link accounts, earn another 150 in stars once they make a qualifying purchase. This adds to existing Delta rewards relationships already with Lyft, Airbnb, and Instacart. Delta stock is up just over-- let's see-- it was just over 1%, down 27%, though, year to date. Starbucks is up as well 1%, and down 25% year to date.

Interesting partnership, although speaking of coffee loyalty stories, a big story this week, Rachelle, has been Dunkin' members are furious at their changes, making it harder to get a free cup of coffee. And they say they're going to Starbucks. I don't believe it.

RACHELLE AKUFFO: I mean, there's a pretty significant price difference between what you pay at Dunkin' and Starbucks. I don't know how long--

DAVE BRIGGS: Taste difference, too.

RACHELLE AKUFFO: --the outrage is going to last when you start looking at your wallet. Exactly. But as you were mentioning these partnerships that Delta has, we saw from Prashant Sharma, vice president of loyalty at Delta, they've really been trying to evolve the premium experience. And they say that they want to really capture that, whether you're flying with them or not. So clearly having that overlap that Delta customers get to enjoy that premium experience. So do Starbucks consumers. I like this fusion. I think this is good. What do you think, Seana?

SEANA SMITH: Yeah, I don't think there's anything not to like about it. I'm a little confused just in terms of how are you going to prove that you're flying on Delta, how exactly this all works. So I think we're all going to have to check the fine print of this. But this partnership, of course, makes a lot of sense. And this is coming in terms of, as we approach a potential worsening economic slowdown, consumer facing brands facing a pretty rocky couple of months-- that's what we expect, at least. So a partnership like this certainly does not help, Dave.

You listed the partners that Delta has already had locked in here so far. It makes a lot of sense. I hope a similar partnership is coming to United. I don't fly Delta that often. But I think it makes a lot of sense. And I think flyers of Delta and Starbucks drinkers are going to be very excited about this one.

DAVE BRIGGS: I'm just wondering which of the airlines is going to partner up with a streamer. That's got to happen in the next couple of years. Just going to put that out there.