Tweaks to Delta SkyMiles coming in 'days' as CEO doubles down on need for the controversial overhaul
Delta Air Lines will announce tweaks to the overhaul of its SkyMiles frequent flyer program "in the coming days," CEO Ed Bastian said on Thursday.
But don't expect the old program to come back.
During the airline's third-quarter earnings call, Bastian said he stood by the airline's decision to revamp the program, even though the changes were implemented too quickly — "rip[ping] the band-aid off," as he said previously.
"We had too many changes rolled out at the same time," Bastian said, "that we needed to go back and reassess the planned rollout for the new qualification levels."
"There still will be changes to the program. I've been very clear about that," he added. "But we're going to make modifications to what we announced."
Still, Bastian said, the broad overhaul was necessary, something that Bastian said most customers agreed with — even those who did not like the changes.
"Everyone sees that the premium number of customers that we continue to build are in excess of the premium assets that we have to offer," he said. "Most everyone also agrees that something has to be done."
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Bastian said that the additional changes were being made in response to direct customer feedback, rather than because of customers defecting to other airlines or shifting spend to other credit cards.
"We're not seeing any changes to trajectory, whether acquisitions, or changes to spend levels," Bastian said. "Everything continues to stay intact."
In terms of the changes to lounge access policies, Bastian said that there was no sign of customers canceling premium credit cards en masse. To the contrary, even more customers were signing up for the cards.
"We did this together with American Express and if anything, we've seen a shift to higher premium card acquisition."
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Notably, he added that the airline had received feedback from customers who supported the changes as originally announced.
"We heard a full 360-degree view of the perspective," Bastian said, "but it gave us a chance to sit back and reflect on it."
Delta announced changes to the SkyMiles Medallion program last month, which would make Medallion Qualifying Dollars — MQDs — the sole qualifying metric and also significantly raise spending requirements to reach the various levels of status. It would further emphasize spending on Delta credit cards while eliminating requirements linked to taking actual flights with the airline.
Delta simultaneously announced changes to its Sky Club lounge access policies, limiting the number of times premium credit card holders could visit the lounges each year.
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The changes and pressures come as the frequent flyer programs increasingly provide a crucial, high-yield share of airlines' annual revenues. Banks pay airlines for miles, which they then distribute to customers as credit card spending rewards.
Delta, in particular, has benefited to the tune of billions of dollars annually from its credit card partnership with American Express. While the airline has pushed aggressively to grow its program and the brand, its success has become a double-edged sword: It has harmed the brand as Sky Club lounges became crowded beyond capacity and elite members found perks devalued to the point of being almost worthless.
Delta was on track to make $7 billion in revenue this year from its partnership with American Express, Bastian said on Thursday.
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| 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. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
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 $6,000 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.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.