Delta Air Lines Inc. will shift its SkyMiles loyalty program to use only cash spent, not miles flown, in calculating member rewards, a change designed to benefit the increasing number of people using its credit cards for everything from flying to buying groceries.
(Bloomberg) — Delta Air Lines Inc. will shift its SkyMiles loyalty program to use only cash spent, not miles flown, in calculating member rewards, a change designed to benefit the increasing number of people using its credit cards for everything from flying to buying groceries.
Starting Jan. 1, amounts spent on fares, Delta credit cards co-branded with American Express Co. and other cards linked to SkyMiles accounts will be used to calculate rewards. The Atlanta-based airline will also begin to limit access to its Sky Club airport lounges.
Delta currently grants mileage points based on airfares, the number of flights that aren’t basic economy and card spending. The rewards can vary based on whether the flight is Delta’s or one of its partner airlines, and are increased for customers who have already qualified for its Medallion status.
Read More: Five Things You Need to Know About Delta’s Big SkyMiles Changes
The SkyMiles overhaul highlights ongoing shifts in airline loyalty programs that were initially created to award frequent business travelers who purchased high-dollar tickets, earning rewards as they racked up miles flown. Both customers and employees supported simplifying the program, said Dwight James, Delta’s senior vice president for customer engagement and loyalty.
“Our customers today have not been rewarded for engagement beyond just flying,” James said in an interview. With 50% growth in loyalty members who buy more than just flights “their feedback has been ‘we would love to be rewarded for being fully engaged with Delta.”’
Delta says the number of its credit cards co-branded with American Express has increased 25% since 2019, and SkyMiles members using Delta cards for non-flight purchases has climbed 29%. Young people travel more than previous generations, and make up nearly half of the people now getting the Delta-Amex cards, according to Delta.
Delta’s changes follow American Airlines Group Inc.’s similar redesign of its AAdvantage program in 2021.
As part of the overhaul, Delta will restrict access to Sky Clubs. Basic economy travelers will be excluded. Holders of Delta SkyMiles Platinum and Platinum Business Amex cards will no longer have automatic access after Jan. 31, 2025.
But American Express said Thursday that starting Feb. 1, 2025, its Platinum and Business Platinum cardholders will each receive six passes for the clubs each program year. Starting that same day, SkyMiles Reserve and Reserve Business Amex holders will be limited to 10 club visits a year, though unlimited visits can be earned by spending $75,000 annually on their Delta cards.
Delta said that its Sky Clubs grew to be quite crowded during the pandemic because it allowed status and miles to roll over year to year even though people weren’t flying. They expect some level of “settling” after this year when the roll-overs start to phase out.
The loss of flight credits mean it could take longer to reach premium status and advance to higher levels. But Delta notes that there will be more ways to add qualification dollars — in fact, big credit card users can spend enough to earn silver status without ever taking a Delta flight.
Delta isn’t done tinkering — it will announce additional changes to the loyalty program over the next several years, President Glen Hauenstein said at an industry conference on Thursday. The whole point of loyalty programs, he noted, is that faithful customers will get more benefits.
“It’s hard to make 100% of the customer base happy,” James, the vice president, said. “Will there be some people who may be disappointed? There may be, but broadly speaking, we feel good based on focus groups and customer feedback.”
(Updates from the seventh paragraph with additional details from American Express and Delta’s president’s comments on Thursday from the seventh paragraph)
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