There’s no denying that premium credit cards are all the rage nowadays, and annual fees are reaching new heights. The Chase Sapphire Reserve is undergoing a refresh, a new Chase Sapphire Business is launching, and the Amex Platinum is undergoing some updates later this year.
So here’s another fun credit card topic. Could Delta soon issue (by far) the highest annual fee co-branded credit card in the United States? It would appear so.
In this post:
New premium Delta credit card on the way?
View from the Wing flags how a Reddit user shares that there’s a new Delta Amex card in the works, above the current Delta Reserve Card (which is Delta’s most premium credit card). The user shares no other details, but points out how they also shared the Medallion program overhaul days before the official announcement, and before details leaked anywhere else. So there’s definitely some credibility there.
For what it’s worth, this isn’t the first time that we’ve heard of this general concept. During Delta’s November 2024 Investor Day presentation, Delta President Glenn Hauenstein hinted at the possibility of a more premium card. He acknowledged that “we’ve got the Reserve Card out there,” but asked “is there even a better card?” He finished by saying “we’ll put on our thinking caps on that.”
We know that for US airlines, loyalty programs, and in particular co-brand credit cards, are one of the biggest sources of profit. Delta’s renumeration from its co-brand Amex portfolio is currently around $7 billion annually, though the airline is hoping to increase that to $10 billion.
However, the timeline with which that happens keeping being pushed back. Given how competitive the credit card space has become, including the increased popularity of transferable points cards, I imagine that poses a challenge for Delta. So I suppose a super premium card might be part of that strategy.
Is there a limit to how “premium” cards can get?
The popularity of premium credit cards has exploded in recent years. I’d say this largely comes down to several factors, including the following:
- The cards largely actually have good value propositions, and are easy to justify, at least for savvy consumers
- Demand for premium travel continues to be through the roof, and it’s clear younger generations are happy spending their disposable income on travel experiences more than ever before
- We live in an era where people feel the need to “keep up” (made worse by social media), and I think the travel experience is a large part of that
We’ve gotten to the point where $600-800 annual fees are normalized. So could we see annual fees of $1,000+? What about $5,000+? In theory, I can see how this could be a very appealing segment to card issuers — not only could those annual fees generate significant revenue, but people spending that much on an annual fee are also likely to spend a lot on their cards, which is another way card issuers make money.
The issue is, what kind of a value proposition could Delta come up with that would make the card worthwhile? Elite status isn’t worth as much as it used to be. Lounge crowding is a major issue. First class upgrades are rare. So would a premium card just be about giving people even more priority beyond existing card members? After all, so many “benefits” nowadays are just about rearranging priority for experiences. Or could we see something else like, Delta One Lounge access, automatic elite status, etc.?
It’s anyone’s guess how this plays out, but I’m inclined to believe that something is in the works here. Delta already has four tiers of credit cards, so what’s a fifth tier, I suppose?
Bottom line
Delta is reportedly working on a new premium card, a tier above the current premium card. While we don’t have any additional details as of now, I’d expect this card might have a four-figure annual fee. The question is what kind of perks would be lucrative enough for someone to consider the card.
What do you make of the concept of an even more premium Delta credit card?
I officially call this the Amex Tim Dunn card.
It's bizarre to me that ANYONE would get a Delta credit card.
It's the worst frequent flyer program in history, and the credit cards are insultingly bad.
I guess if you enjoy spending 500,000 SkyPesos on a single J flight, knock yourself out, but...I genuinely don't get it.
Ben, thank you for not calling it an ULTRA premium card.
So platinum; much premium.
Lucky - in terms of the “how premium can a card get…” I am guessing two things are at play
1) Banks are trying to recoup the cost of these cards with higher fees as revolving balances may not have risen as much as hoped
2) Banks are trying to force customers to choose - a few years ago, you could justify holding a few premium cards from different banks. Now - with fees...
Lucky - in terms of the “how premium can a card get…” I am guessing two things are at play
1) Banks are trying to recoup the cost of these cards with higher fees as revolving balances may not have risen as much as hoped
2) Banks are trying to force customers to choose - a few years ago, you could justify holding a few premium cards from different banks. Now - with fees going so high, more customers are being forced to choose. I am downgrading and basically sock drawering more cards as fees go up. If you have a high income customer, it’s better to get 100% of her spend than 50%, or 25%. Offer her a super premium card that may fit her spend - she may cancel the card from the other bank. So a lot this seems like a market share play. The number of cards per person is going to decrease among those that play this game, with “unprofitable” card accounts being weeded out, and spend per card going up.
Agree on both counts. People with these cards generally aren't likely to revolve balances as the underwriting standards are higher (so far likelier to pay in full every month), and of course you generally can't anyway with the Amex charge cards.
I disagree. I think the assumption is that folks at these net worth and spend levels would not carry balances month to month, but that is not true.
I'd expect unlimited SkyClub access (potentially with additional barriers removed like the 3 hour before departure rule), priority on upgrades that is higher than Reserve, better MQD earning, and potentially a couple Delta One Lounge passes when flying in First on a non-D1 route.
Yes, some of things make sense to me. I can imagine a couple of D1 lounge passes being attractive to people who fly from NYC, BOS, ATL, or LAX to high-end regional leisure destinations twice a year on top of their business travel. Maybe 1 MQD per $5 and as you say, upgrade priority ahead of someone with the Reserve, assuming same fare class and status level as it is now. Is it for me? No, but I can see it attracting certain people.
No shot anyone gets D1 lounge passes.
That's not even a thing you get w/ credit cards for Flagship or Polaris lounges. And those have been around for much longer. AA or UA would've jumped on that a long time ago.
I could see a $999 or $1099 card that is basically the Reserve, but with unlimited SkyClub access (i.e. what the Reserve used to have).
i feel like most people who would be willing to upgrade to that already meet the spend requirement though. just my two cents
i feel like most people who would be willing to upgrade to that already meet the spend requirement though. just my two cents
just my two cents - i feel like most people who would be willing to upgrade to that probably already meet the 75k spend requirement
just my two cents - i feel like most people who would be willing to upgrade to that probably already meet the 75k spend requirement
Your can say that again!