It should be the best of times for U.S. airlines with a travel boom still going strong, but investors are nervous demand may soften as the economy falters, making it harder to protect profits from soaring costs.
03.10.2023 - 18:57 / travelpulse.com / Ed Bastian / Delta Air Lines / Delta Ceo / Donald Wood
Delta Air Lines announced that some of the recent changes to the carrier’s loyalty program would be rolled back after travelers voiced their displeasure.
According to The Associated Press, Delta CEO Ed Bastian said during a meeting at the Atlanta Rotary Club that the airline “went too far” when addressing the rising number of frequent flyers reaching elite status.
The carrier revealed earlier this month that it planned to limit the number of travelers who would be permitted to enter its airport Sky Clubs, starting on February 1, 2025. The airline also revealed changes to the SkyMiles program, which makes it harder to qualify for status by allowing only Medallion Qualification Dollars to serve as the qualifier for Medallion Status.
Bastian said that Delta was reconsidering its decisions and would make “modifications” to the previously announced plans, with details expected to be revealed “over the next few weeks.”
“No question we probably went too far in doing that,” Bastian said. “I think we moved too fast, and we are looking at it now. We have received a lot of feedback.”
The CEO said that top-tier Diamond status has doubled since the pandemic began, which led to higher demand for premium seats, upgrades, and access to its airport Sky Clubs. As a result, the carrier attempted to fight against overcrowding by making it harder to earn the rewards.
To convince jaded Delta travelers to make the switch to a new airline, several carriers—including Alaska Airlines and JetBlue Airways—revealed they would match each customer’s loyalty status if they made the switch.
In addition, just days after announcing plans for its largest-ever schedule for flights from the U.S. to Europe next year, Delta revealed it would cut flights to six major cities in the coming months, starting in October.
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It should be the best of times for U.S. airlines with a travel boom still going strong, but investors are nervous demand may soften as the economy falters, making it harder to protect profits from soaring costs.
Delta has revised the changes to its Skymiles loyalty program that sparked a backlash when they were announced in September. Those changes shifted the key metric to build loyalty: The new emphasis would be on money spent.
In an email to consumers Wednesday afternoon, Delta Airlines CEO Ed Bastian shared an update to the drastic changes made to the SkyMiles program last month. They included limiting Sky Club access for many American Express cardmembers to a few times a year and raising the requirements to achieve elite status (while dropping the ability to earn it on segments). Following much speculation, Bastian said that the overwhelming email response of disappointment led to a slight “walk back” of these changes. Taking effect in 2024 for the 2025 Medallion status year, these are some of the anticipated updates for members.
American Airlines announced the introduction of a new business loyalty program, dubbed AAdvantage Business.
Southwest Airlines will make it easier to earn status on its Rapid Rewards loyalty program for next year and introduce new perks for current status holders.
Southwest Airlines is one of the major airlines in the United States for several reasons, including low fares to destinations all over the country, as well as a couple of international locations. Additionally, Southwest allows each passenger to check up to two luggage pieces at no extra cost. The airline is adding more perks for travelers to enjoy in 2024.
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Delta Air Lines hit a nerve with loyal fliers, arguably its most important customer bases, when it upended elite status qualification in its SkyMiles loyalty program last month. Customers provided the carrier with ample feedback of what CEO Ed Bastian described as a “360 [degree] view” of the controversial changes.
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.
Delta, United, and American Airlines are three of the biggest airlines – not just in the United States but also globally.
Update: October 10, 2023, at 1:59 p.m. ET