Delta and American Express are working on a new premium credit card, positioned as higher-end than their current premium Delta Reserve card that comes with lounge access.
This was teased back in November during Investor Day, when they promoted their use of AI to custom-price tickets and that they now only have 13% of first class seats available for upgrades. They also talked about moving their basic economy concept into business class, taking perks away from premium customers unless they spend more.
At the time, airline president Glen Hauenstein noted that “We’ve got the Reserve Card out there,” but asked “is there even a better card? We’ll put on our thinking caps on that.”
Now the tipster who leaked Delta’s planned elite and Sky Club access changes back in September 2023 – leading to such a backlash that the airline was forced to backpedal says that indeed this project is underway.
new amex delta in the works (above Delta Reserve)
With news that Sapphire Reserve is bundling new perks and moving to a $795 annual fee and American Express announcing that they’ll be refreshing Platinum with an almost-certainly higher annual fee, there’s a bet that there’s a market for ultra-premium cards at an ultra-premium price.
The Delta-American Express partnership is huge, at over $7 billion annually in the aggregate. But it’s actually behind the projections that were made when they re-upped their agreement for 10 years back in 2019. At the time, they expected to hit $7 billion in 2023 without the numbers being inflated by pandemic-era inflation.
They’re using free inflight wifi as a way to feed the top of the funnel and get more customers to market the card to. There’s a hope that their Starbucks and Uber partnerships can help do the same thing. This would give them another product to sell – because the current slate of products offered to the current group of customers has been mined as deeply as possible. There’s not just much headroom for growth.
A new ultra-premium card would be a narrow market but a lucrative one – a high annual fee to guarantee profitability, and a lot of spend. Given the direction Amex has gone the past few years, we can expect it to lean heavily into partner merchant statement credits. And it would presumably come with full Sky Club lounge access (since that’s been taken away from Reserve).
(HT: @JordanOnBrand)
I want one. make it asap
I am not opposed to this idea and what actually be interested in the details. However, for me the only way it would make sense is if this new premium card comes with a 7500 MQD Head Start bonus, earns at least 10 MQD per every $10 dollar spent, has complimentary unlimited Skyclub access for myself and a passenger, and also includes an annual complimentary upgrade to Delta One for myself and a passenger. I definitely wouldn’t mind paying a higher annual fee if it included the commensurate perks.
As long as Sky Pesos are worth only .01 I’ll pass.
Delta specializes in charging more while providing less to loyal customers so I’ll pass on this one.
@ Diam Med – 10 MQD for every $10 spent is stretching it abit. Maybe 7,500 headstart MQM, 1 MQD for every $5 spent, unlimited SkyClub, and two annual BOGOs ncluded would work. That would be worth a fee of $2,495. Of course, then everyone would be DM.
Since Reserve gives me very little now. I think I’m good.
No way.
Already about to cancel Platinum and change to Morgan Stanley branded.
These 2 deserve each other.
Back in the Dark Ages when my husband was a practicing attorney, at one point he figured out that I was far better to have 10 clients, each of whom he charged $200 per hour, than 20 clients who were charged $100- hour.
It would behoove the credit card companies to follow the same path. Charge 2x as much, have 1/2 the number of customers. Fewer phone reps needed, less food and drinks at lounges, and an overall small clientele base generating the same amount of revenue.
I got rid of my Reserve card in favor of an Amex Platinum. For my needs, that has worked better as I don’t chase status with DL anymore and haven’t found SkyMiles to be an attractive currency recently. As for lounge access, if you spend enough on the Platinum card, you still have it. I hope that doesn’t change.
The future of all loyalty card programs may be determined by the future of swipe fees. Swipe fees have become so high that merchants are starting to rebel and Congress has noticed. If Congress should ever act to limit swipe fees or tax miles/points awards, you can kiss all of these programs good-bye.
@kimmiea–You may be onto something. That’s kind of what Disney did at its theme parks. It seems to have worked out pretty well for them financially.
The Amex platinum gives you access to the Skyclub and the Centurion club. The Skuclub is overcrowded now and the food is just ok. If Amex has a more premium card it needs to give better Delta airline benefits . I agree , one complimentary Delta one upgrade would be worth it for cardholders who don’t get up to Diamond status otherwise it isn’t not worth it. The complimentary BOGO has restrictions so that is not as great as it sounds
If we spend more, we should get more!
Let’s continue to voice what we think about the upcoming card…and what perks would be valuable to us.
Surely the company reps read these comments & VOC does matter, so If enough of us voice what means the most, and voice what would cause us to leave Delta/AMEX, then we may have strength in numbers.
@Gene, yes I know the 10 for 10 might be stretching it, but gotta start somewhere–right?
If Amex charges more, we should get more. A platinum Amex gets you access to Skyclub and Centurion lounge anyway . The Skyclubs are overcrowded now and snacks are just ok. Not appealing
The BOGO has restrictions so it sounds good but is not as convenient to use
Give us 1 Delta one upgrade for those who don’t reach Diamond status and it may make sense
If Amex charges more, we should get more. A platinum Amex gets you access to Skyclub and Centurion lounge anyway . The Skyclubs are overcrowded now and snacks are just ok. Not appealing
The BOGO has restrictions so it sounds good but is not as convenient to use
Give us 1 Delta one upgrade for those who don’t reach Diamond status and it may make sense
More and more retailers charge a fee for using your card. I think amex growth has mossed projectuons as people migrate away from using card. Plus (or minus) delta has killed the value of status. I will soon be taking my first southwest flight and i am not renewing my reserve card.
Coupons for the coupon gods.
@Steve – I pay several thousand dollars in credit card fees monthly but I strongly believe that the banks, together with the entire hospitality industry, will stave off any notable changes. Good time to buy Visa on a market correction.
As to the Disney example, I’m not sure that’s the one you want to go with. A trip to Disney was a beloved trip for countless families over many decades. The appalling greed of Disney management has made this cherished goal utterly unobtainable due to insane price increases and despite your premise that at least the people who can afford to go won’t have to deal with horrible lines after paying the eye watering prices, try again. I’ve been going to Disney World for fifty years and the lines are every bit as bad as ever.
It would have to be very good to warrant even more dollars. Unlimited access is not a worthwhile extra benefit since anyone willing to spend that much is has most likely already unlocked unlimited access. If it gave unlimited access including third party clubs, and regardless of which airline I am flying that day, with 2 free guests, I would consider it. If it gave a companion pass that could be used anywhere in the world I would consider it. Some of the other ideas are good too, like 7500 MQD
How about giving Delta 360 as a bonus if you reach Diamond and have this card?