Is Delta working on a premium lounge product to compete with American and United?
Delta Air Lines has historically been the leader of the pack when it comes to innovation among the big three U.S. airlines.
The Atlanta-based airline introduced business-class service (first called Medallion Service) before American Airlines and United and is on track to be the first of the group to roll out free in-flight Wi-Fi. Delta was also the first to switch to a dynamic award pricing scheme, introduce a revenue requirement for elite qualification and to roll out basic economy fares. The list goes on.
The one area where Delta has fallen behind is its lounges, particularly for its premium passengers. While Delta's network of "standard" Sky Club lounges is generally stronger across the board than American's Admirals Clubs and United's United Clubs, both of those carriers offer an elevated, more exclusive lounge experience for premium flyers: American with its Flagship Lounges and United with the Polaris Lounges.
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.
Delta's Sky Clubs regularly face overcrowding, especially at the airline's busiest hubs. That's in part because aside from paid access, the airline makes the clubs accessible to select credit card holders, select Delta and SkyTeam elite members, Delta One passengers and business-class passengers on partner airlines. The clubs also lack key amenities that have become the norm for the top international business-class lounges, like sit-down dining services and nap rooms.
Related: The ultimate guide to Delta Sky Club access
However, it looks like all of this could be changing.
Avid reader (and elite Delta flyer) Andres Morales (Ajetsetter), tipped off TPG that a senior Delta staffer at LAX told him that the airline will be opening a lounge there exclusively for Delta One passengers.
According to our tipster, the lounge would be located on the top floor of the $1.86 billion Sky Way that's currently under construction and will connect Terminals 2, 3 and the Tom Bradley International Terminal at LAX. While Delta has previously shared that a new Delta Sky Club will be built at LAX and that it would be among the largest in the airline's network, it didn't include any mention of a Sky Club exclusive to Delta One passengers.
We reached out to Delta for more information, and a spokesperson would only say that the carrier is in the very early planning stages for lounge improvements and still evaluating how it might offer more for Delta One customers on the ground.
"We are always exploring how we can enhance the Delta One experience in the airport, including a differentiated Delta Sky Club for Delta One customers. We are still in early planning stages for the new Club offerings coming to LAX," the spokesperson said.
It makes sense that Delta would want to debut a new lounge experience at a hub like LAX. The airline has high premium demand on its routes in and out of the city, but — since it doesn't dominate the market share like it does at most of its hubs — it faces steep competition from American, United and foreign carriers, all of which who view LAX as a vitally important airport in their networks.
Related: Best credit cards for lounge access
While not explicitly confirming that a Delta One-exclusive lounge is in the works, Delta did say the Sky Way project at LAX will include a larger, exclusive Delta One check-in area similar to what it offers now. Aside from privacy, it offers passengers a comfortable place to relax and grab a refreshment before heading through security.
The entire Sky Way modernization project also includes other key features such as more gate-area seating and security screening capacity with automated security lanes, and is projected to be completed in 2023. However, the new lounge -- whether that's a standard Sky Club or this new premium lounge -- could open as early as the end of 2021, according to Delta's project page for the Sky Way at LAX.
It seems like Delta is at least considering competing against its domestic rivals who have had exclusive spaces at the airport for premium passengers for a number of years. If this new lounge product comes to fruition, we will be eager to see how Delta will differentiate itself from the competition.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.