delta skymiles

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Delta’s SkyMiles Problem Is Short-Term Greed

Oct 02 2023

Delta wants us to believe that they are just trying to solve a problem – that there are too many elites for the benefits available like upgrades and club access. They have no choice! Victims of their own success!

The truth is that planned Delta changes weren’t about scarcity of benefits or too many Diamonds. It was all about squeezing customers for more American Express spend because Delta is trying to move from $7 billion in revenue from American Express to $10 billion. But they went too far.

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Delta CEO Promises To Unwind Some SkyMiles Changes After Customer Backlash

Sep 27 2023

Bastian has previously said that the changes to elite status and lounge access are not the end of what members can expect (“over the next several years we’ll announce additional changes to qualification and to how a mile is awarded”). And, of course, even after those changes were announced they quietly devalued SkyMiles further by raising the price of Mexico-originating awards (one of the bets values that had remained in the program for use of miles). Mileage devaluations continue even as they talk about “modifications” to status and lounge access changes they’ve recently announced.

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Delta Air Lines Had A Good Thing Going, Then They Got Greedy

Sep 23 2023

For years they’ve been taking away from the program, sometimes a little at a time and sometimes a lot. And they’ve been requiring more and more from customers to get less and less. Like the proverbial boiling lobster, SkyMiles elite members went along for the most part every step of the way. And that was very good to Delta, generating around $7 billion from American Express at around a 40% margin and accounting for the vast majority of the airline’s profit.

Delta wasn’t satisfied with that, and they got greedy.

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Delta Is No Longer A Good Enough Airline To Keep Gutting SkyMiles

Sep 21 2023

American and United are in many ways rising. Delta isn’t as good as it once was, though that could change. Ultimately brand follows the underlying reality, even if imperfectly and with a lag.

Delta is not a good enough airline to keep doubling down on the path of low value miles, expecting more from the consumer, and seeing the consumer continue to respond.

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The Most Surprising Thing About Delta’s Changes Is There’s No Good News

Sep 15 2023

Typically when airlines make changes to their frequent flyer programs, they try to balance the bad news with something positive for customers. That may be new benefits, throwing customers a bone. Or it may be some rhetoric about how customers are actually going to be better off with the changes. Executives will say that they ‘listened to customers’ and are making ‘changes you’re going to like.’

There’s really none of that with Delta. Delta is demanding more from customers, and not pretending to offer anything new or more in return.

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