Tag Archives for delta skymiles.
Nine years ago Delta started requiring all changes or cancellations of award travel be made at least 72 hours prior to departure. If you had a last minute change of plans, you’d have to forfeit your ticket and buy a new one. If better award space opened up close to departure, you were out of luck.
Delta has finally dropped the 72 hour requirement to change or cancel an award.
Delta raised $9 billion, backed by its SkyMiles program. They broke SkyMiles into three new separate Cayman Islands companies: SkyMiles Holdings, SkyMiles IP, and SkyMiles IP Finance.
As part of the deal they had to agree not to start a competing frequent flyer program, and they had to agree to limits on devaluing the program.
On Monday Delta announced that they were mortgaging the SkyMiles program, taking out a $6.5 billion loan secured by their frequent flyer program and its revenue stream As part of the deal they had to disclose a great deal of the inner workings of the program including where members are located and how much they’re spending on Delta American Express credit cards, along with how much they’re generating in revenue selling miles to members.
Just three days after announcing this deal they’ve announced an upsizing. Instead of borrowing $6.5 billion, they’re going to borrow $9 billion.
Delta and United are raising money in private markets against their loyalty programs. American Airlines is using its AAdvantage program to securitize a subsidized government CARES Act loan. These moves underscore that the frequent flyer programs remain one of the most attractive assets held by airlines, even during the pandemic.
Raising money on the programs though means disclosing much more information than they’re using to offering.
Past advance sales of large blocks of miles to credit card partners have on balance probably been good for members, borrowing against the program may not be although it’s far from a foregone conclusion.
You’d expect lenders to want a strong program to secure future member interest and an ongoing revenue stream yet in practice that’s not how things usually work out. Still, while Delta has a strong elite program, there’s really not much left to devalue on the earn-and-burn side.
Everyone pauses in place and gets a do-over. That’s the message from Delta which announced an extension of elite status, club memberships, vouchers and more.
There’s a natural reason why Delta is first among U.S. airlines to do this – and an advantage they have in rollover qualifying miles that better positions them to still take advantage of their elite program when travel comes back.
NBC News Capitol Hill Correspondent Kasie Hunt lost her Delta elite status, and it’s Donald Trump’s fault.
However if you’re dating problems with SkyMiles, the program really started going down hill in the waning months of Bill Clinton’s second term.
Delta says they are adding Amex cardholders rapidly and the final 2019 total comes to 1.1 million. Delta also shares that they’re adding SkyMiles members at “double the rate of just three years ago” for a total of 6 million new members in 2019.
>Here’s an interesting opportunity. South American mega-carrier LATAM flies to Easter Island. Easter Island is a Chilean territory, so LATAM Chile operates from Santiago.
Once a week on Mondays, though that Boeing 787 continues on from Easter Isand to Tahiti and returns to Easter Island on Tuesday. And award availability on that flight is really good.
Air France KLM is offering great award space between the U.S. and Europe for this coming summer. There are plenty of routes and dates where you can book business class awards for at least four passengers.
Often Air France and KLM awards can be booked using their own Flying Blue miles – easy to get, they’re a transfer partner of American Express, Chase, Citibank, and Capital One – however in this case most flights appear even to be bookable using Delta SkyMiles as well (Delta is an American Express transfer).
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
