Demand was up, but so were fuel prices. And there were some downs.
19.10.2023 - 02:29 / skift.com / Delta Skymiles / Ed Bastian / Delta Ceo / Delta I (I) / Selene Brophy
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.
That’s still the case with Wednesday’s change, but with lower thresholds. Here are the numbers Delta released for so-called Medallion Qualifying Dollars (MQDs):
To earn these MQDs, members can fly with Delta and other partner airlines, spend on eligible Delta co-branded American Express Credit Cards and book car rentals, hotel stays and vacation packages.
Delta also eased the limits on Sky Club visits it had put in place in September. For example, it said Wednesday that SkyMiles Reserve American Express card members would have 15 days of access, up from 10.
Delta CEO Ed Bastian acknowledged in late September that the airline had “moved too fast” and that it would make changes.
Bastian said the initial change was driven by a big increase in higher-tier loyalty members during Covid that the airline couldn’t serve. “We have so much demand for our premium product and services that are far in excess of our ability to serve it effectively in terms of our assets,” Bastian said. That included offerings like Delta One Sky Clubs, upgrade certificates and other perks.
Delta said it had not seen a drop in bookings or credit card usage with its co-branded American Express credit card, which generated $1.7 billion in the third quarter. Delta said it is on track to generate $7 billion in credit card-related revenue in 2023.
Demand was up, but so were fuel prices. And there were some downs.
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Following Delta Air Lines' decision to increase SkyMiles elite status requirements, some members may decide to jump ship. With Delta frequent flyers voicing their dismay at the new requirements, other airlines, such as Alaska Airlines and JetBlue, were quick to offer status to disgruntled Delta flyers. Now, American Airlines is following suit and has launched a new status challenge for upper-tier Delta and United Airlines elite members.
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In mid-September, Delta announced an overhaul to its SkyMiles loyalty program and proprietary Sky Club lounge access policies that would take effect in 2024. The anticipated changes—which made obtaining elite frequent flier status and accessing its airport lounges much harder—resulted in significant backlash, such that Delta’s chief executive Ed Bastian said the airline would backpedal and make “modifications” to the changes.
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Delta Air Lines revealed a highly-anticipated revamp to its loyalty program on Wednesday, following swift backlash over previously-announced changes.