Delta CEO: Airline Will Scale Back SkyMiles Changes

Delta recently announced some major changes for loyal flyers, including a complete overhaul of the SkyMiles program, plus new Sky Club access restrictions. Many SkyMiles members aren’t happy about these changes, and it sounds like the airline will act on that frustration.

Delta CEO says airline went too far with SkyMiles changes

Earlier this week, Delta CEO Ed Bastian was interviewed at the Rotary Club of Atlanta. Unsurprisingly (given what a hub Delta has in Atlanta), the topic of SkyMiles changes was brought up. I was expecting that Bastian would just have some canned response about how the changes are good for frequent flyers, but that’s not what he did.

Instead, he gave a surprisingly (mostly) candid answer. Among other things, Bastian stated:

  • “We’re still assessing what we do, but there will be modifications that we will make, and you’ll hear about it sometime over the next few weeks.”
  • “We need to make certain that we can serve our higher tiers with a level of premium experience that you deserve. And it’s gotten to the point, honestly, where we have so much demand for our premium products and services that are far in excess of our ability to serve it effectively.”
  • “In terms of our assets — whether it’s Delta One, whether it’s the Sky Clubs, whether it’s the upgrade certificate, whatever it is — we have grown that population. COVID almost doubled the amount of Diamonds.”
  • “No question, we probably went too far in doing that. Our team wanted to kind of rip the band-aid off, and didn’t want to have to go through this every year. I think we moved too fast. We’re looking at it now.”

You can watch the interview for yourself below, and the topic of Delta’s loyalty changes comes up about 29 minutes in.

I think Delta learned an important lesson here

Sometimes being a consumer in the airline industry is a helpless experience, especially when you feel a sense of loyalty to a company.

So I think it’s refreshing to see an airline acknowledge when it went too far, and overplayed its hand. I’m impressed that Bastian states that “no question, we probably went too far in doing that,” since that’s more acknowledgement than you’ll get from a vast majority of executives.

What I’m curious about is if Delta can fully keep its loyal customer base, or if the damage has already been done here, at least on some level:

  • No matter how you slice it, I think Delta lost a lot of trust with frequent flyer programs with how it announced these changes; the airline wasn’t at all transparent about the reasons for these changes, and tried to frame them as a positive development
  • Even if Delta backtracks on these changes for now, keep in mind that this is eventually the direction that things are headed; Bastian is saying the airline wanted to rip the band-aid off rather than making changes every year
  • I think the reason a lot of frequent flyers are frustrated is because the changes aren’t actually intended to reward loyal customers, but rather are intended to pad Delta’s bottom line (which is fair enough); for example, the new limits of Sky Club access 6-10 times per year impact frequent flyers a lot more than they impact the occasional Delta flyer
  • While I can appreciate the need to manage expectations of customers and deliver on promises, I think it’s clear what the motivation for these changes is, which (understandably) isn’t mentioned by Bastian — it’s to encourage people to spend more on co-branded cards, since the airline is hoping to grow that business to $10 billion in revenue per year

As I’ve said before, I think airline loyalty just isn’t worth it like it used to be. On top of that, I also think Delta overplays how premium of an airline it is, and how much of a competitive advantage it has.

Bottom line

Delta CEO Ed Bastian has made it clear that the airline plans modifications to its SkyMiles changes, and that the company went too far. It’s nice to see an airline backtracking for once, and it clearly reflects just how unpopular these changes were with Delta flyers.

Even if Delta makes modifications, I’d encourage people to still really consider whether loyalty is worth it, since we know which direction things are headed sooner or later.

What do you make about Bastian’s comments on modifications to SkyMiles changes?

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iamhere Guest

Everyone knows that the airlines and hotels are for their bottom line and not really to reward their members. The members just have to get as good of a deal as they can.

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E dbl Guest

I am disappointed and disgusted with the whole approach the amount of miles flown OET customer should weigh highest and be awarded in stead of maxing out credit cards which really does not give loyalty status People like me what we do we fly most weekends a year also internationally We really should be treated accordingly

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Madam Doane Guest

They full of it. What I heard from a Delta employee is that they wanted to avoid the club house traffic. They claim that the club house traffic was getting ghetto and they made restrictions to reduce traffic. And the worse part of all this changes are how we accumulate points, now you earn points based on how much you spend. That’s stupid greedy to me. Bring back the point system and how to accumulate miles

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lumpco1 Guest

I fly for work. I can pick my carrier for the most part, new system would be easier for me, but harder to atain, this year I have had the MDQ for awhile but am struggling with Miles portion this year,. I have had Diamond for a couple of years, I really dont want to be in competeition whith AMEX holders, I fly Delta because it has fewer delays, and Great service, but like I say my company pays for my flights, I like the Club, this is another reason I choose delta,now i need to use 4 picks for Executive Skyclub membership, I mostly fly alone, so I do not need Executive level. You would think I am the guy they would want to keep happy instead of stepping on my buisness. My company prefers a different airlines. so I am going on a limb to fly delta to begin with. I will fly delta as long as it diamond level is atainable with out pricing me out

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Lee Guest

The Amex Delta Reserve Card needs a refresh. In the card's current form, it is impotent. Its reward structure needs to catch up to what AA did with its Executive Card. 4X on flights. 10X on hotels booked via its hotel portal. 10X on car rentals booked via its portal.

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