Delta Airlines CEO Acknowledges Loyalty Program Overhaul May Be Extreme

Summary

  1. Delta’s Shift in Loyalty Program: Delta Air Lines’ CEO acknowledges changes might have been excessive.
  2. Feedback and Modifications: The airline plans to adapt based on customer feedback in the coming weeks.
  3. New Earning Structures: Changes to how travelers earn Medallion Qualification Dollars (MQDs) and access to lounges.

The head of Delta Air Lines has announced that the carrier is rethinking changes to its loyalty program for the upcoming year, admitting that it may have gone “too far.”

“No question we probably went too far in doing that,” CEO Ed Bastian stated during a meeting at the Atlanta Rotary Club, according to the Associated Press. “I think we moved too fast, and we are looking at it now.”

Bastian added that the company has “received a lot of feedback” and mentioned that Delta would be making “modifications” to the program changes. However, he did not specify what these modifications would entail or provide a precise date for the announcement other than promising “sometime over the next few weeks.”

The comments come weeks after Delta implemented stricter earning criteria for loyalty status in 2024. This change now exclusively counts Medallion Qualification Dollars (MQDs), contrasting with the previous policy, which included Medallion Qualification Segments (MQS) and Medallion Qualification Miles (MQMs). Travelers accumulate MQDs when they purchase flights, book hotels, rent cars, or secure Delta Vacations directly through the airline’s website, earning 1 MQD for every dollar spent.

Moreover, travelers can earn MQDs with a Delta credit card, although they accumulate fewer points per dollar spent.

Delta also increased the spending thresholds required to achieve status for 2025, meaning travelers must now earn 6,000 MQDs, for example, to attain the lowest Silver Medallion status.

Furthermore, the airline will limit access to its Sky Club lounges in 2025 for customers holding a Delta SkyMiles Reserve card, Reserve Business card, or American Express Platinum card. Additionally, travelers who accessed the lounge with an American Express card will be denied entry if flying on a Basic Economy ticket.

In response to these changes, competitors like Alaska Airlines and JetBlue have decided to match status levels for dissatisfied Delta customers.

Consequently, Bastian reported that the total number of Delta customers holding top-tier Diamond status has doubled since the pandemic began, leading to increased congestion at Sky Club lounges and heightened demand for seat upgrades and other premium benefits.

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