NEW YORK — American Express on Thursday introduced several updates to its Delta SkyMiles credit cards that will give additional benefits to its users, as part of its efforts to calm angry Delta Air Lines customers who have considered abandoning the airline. after the fiasco of the SkyMiles loyalty program, which occurred last year.
However, the upgrades will come with a higher annual fee, which according to AmEx, will be more than offset by the new benefits.
New York-based AmEx added $200 in flight credits to the cards after a certain amount of spending, between $120 and $240 in credits at restaurants booked with Resy, as well as between $129 and $240 to be used in apps. transportation like Lyft and Uber. Higher-tier cards will also earn $2,500 in “Medallion-level dollars,” bringing users closer to elite status on the airline.
Additionally, Delta customers will be able to use companion certificates on a wider variety of flights including Hawaii, Alaska, Mexico, the Caribbean and Central America, and not just in the continental United States. In the past, there were complaints that Delta placed too many restrictions on the use of these certificates.
The links with Delta Airlines
Atlanta-based Delta Air Lines and AmEx have decades of corporate ties, which have produced profits for both companies. AmEx customers have access to Delta lounges at airports and can transfer their Rewards points to Delta, among other benefits.
In return, Delta secured $6.8 billion from American Express in 2023 as part of its co-branded credit card partnership. The money comes from fees AmEx earns from the billions of dollars cardholders spend on the cards.
To give an idea of the magnitude, Ed Bastian, Delta’s CEO, told investors in June that Delta credit cards are used by 1% of the entire US economy.
So last year, when Delta modified its SkyMiles loyalty program, many customers saw it as a watering down of its program. One part of those changes required customers to spend more on airline tickets or the Delta credit card to receive elite status on the airline. Delta was also going to restrict the number of accesses a customer could have to its waiting rooms based on their status.
Shortly after the announcement, many AmEx customers were saying on message boards that they would cancel their cards because of Delta’s changes.
Bastian later apologized for the changes, and Delta withdrew some of the proposed changes, or postponed them for a year.
American Express goes ahead
AmEx typically works on renewing its credit cards 18 to 24 months in advance, so the changes announced Thursday were already in the works before Delta changed its SkyMiles program. But the changes come at a time when both companies want to ensure that those who exclaimed “No more Delta” on social media following last year’s changes to SkyMiles remain in the fold.
“These cards offer many new benefits that help customers and business owners move closer to Medallion status, access new credit and more value, and enjoy a premium travel experience,” said Howard Grosfield, president of AmEx Customer Services in the United States.
The new benefits will cost more. The Delta Gold Card will have an annual fee of $150, up from $99 previously, while the Delta Platinum fee will be $350 instead of $250, and the annual fee for the luxurious Delta Reserve will be $650. , above the previous 550.
Source: AP
