Free Delta Upgrades Get Harder: Over 4,000 People Are Upgrading With Miles Each Day
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Free upgrades on Delta likely will not be as plentiful as they once were, based on numbers we heard during the company’s Q1 2019 earnings call today.
Delta President Glen Hauenstein noted that “on average, 4,000 passengers are upgrading with miles each day, with over half of those transactions happening on mobile.”
That’s great news for flyers who find award tickets too expensive, or too troublesome to book, because it enables them to burn their miles to upgrade their seat on a flight paid for with cash. But the popularity of the option is rough news for frequent Delta flyers who have historically placed a high value on the airline’s complimentary Medallion upgrade policy. (Note: We tested Delta’s new Upgrade with Miles process earlier in the year, and while it was indeed effortless, it offers a fairly poor redemption value at roughly 1 cent per SkyMile.)
Hauenstein stated that “mileage redemptions grew 12% in the quarter that ended March 31 as [Delta] provided more opportunities for passengers to use their miles.” That figure “exceeded full-year estimates,” he said, and Delta will add new ways to use miles as currency in 2019 given that its goal is to allow the use of miles “across the entire ecosystem.”
Generally speaking, airlines do not like for passengers to hold massive balances of points and miles, which are seen as liabilities on a balance sheet because they make it more difficult for an airline to estimate how many seats actually will be available to sell.
As Delta is making it ever easier to burn miles, it simultaneously is reducing the amount of unused miles outstanding, encouraging passengers to exchange their miles for less value than ever before and subtly pushing frequent fliers to pay for seat upgrades (via cash or miles) instead of holding out hope for a dwindling shot at a free upgrade.
As the quantity of purchased premium seats rises, it’s reasonable to conclude that the amount of seats available to be distributed for free — via complimentary Medallion upgrades or upgrade certificates — will be reduced proportionally. This has a direct impact on the overall value a passenger should place on Delta’s Medallion elite tiers. As a Diamond Medallion myself, news like this adjusts my expectations of how many free upgrades I’ll receive.
While VIP customer support, reduced/waived fees, the occasional Porsche gate transfer and co-terminal changes do indeed make a difference when you travel on a frequent basis, capturing thousands of dollars in value via free seat upgrades has been the major reason for many to stay loyal to Delta.
Should this trend continue — and considering Delta’s push to squeeze more revenue from premium cabins, we see no reason why it won’t — frequent fliers should consider two things. First, they should consider buying into a premium cabin if that experience matters, as banking on a free upgrade is becoming less and less logical. Second, they should consider diversifying their wallet to include cards that earn transferrable currencies. Amex Membership Rewards, Chase Ultimate Rewards and Citi ThankYou Rewards are looking all the more valuable as shifts like these occur, because they provide flexibility to move points to a wide variety of programs based on your travel needs at any given time.
RELATED VIDEO:
For the latest travel news, deals and points and miles tips please subscribe to The Points Guy daily email newsletter.
Sign-up Successful!
Welcome to The Points Guy!
Earn 50,000 bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $2,000 in purchases on your new card in the first three months of card membership. Plus, earn up to $100 back in statement credits for eligible purchases at U.S. restaurants in the first three months of card membership.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Earn 50,000 Bonus Miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $2,000 in purchases on your new Card in your first 3 months.
- Plus, earn up to $100 back in statement credits for eligible purchases at U.S. restaurants with your card within the first 3 months of membership.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.