Delta CEO Apologizes, But Will JetBlue And Alaska Steal Elite Flyers?

Loyalty is strong. But loyalty is fragile.

Delta Airlines may be learning that lesson this week, after the company’s “updates” to its SkyMiles loyalty program ignited worldwide fury.

The changes Delta announced meant that achieving coveted Medallion status membership will now require spending significant amounts of money, either directly with Delta or with its credit card partner American Express. Lounge access was limited or entirely cut for some flyers, like those with Basic Economy tickets, while the spending required to reach Medalion status was increased 50%.

Why is Medallion status so desirable? Delta says benefits include perks like upgrade certificates, lounge access for member and guests, more SkyMiles per dollar spent, priority boarding, priority check in, priority security line access, free luggage, even onboard drink vouchers. The goodies are doled out by ‘tier’, which are silver, gold, platinum and diamond.

How much is all this worth? The Points Guy claims Diamond status is worth $8380, while NerdWallet says Diamond Medallion status “maxes out at over $11,000 worth of value.”

Of course, something is only worth as much as somebody is willing to pay for it. The spending needed to reach the top Diamond tier, has doubled since 2021. As of 2024, to qualify for Diamond status, you’ll have to spend $35,000.

That’s where paradise was lost for Delta frequent flyers. Delta has gone to a spending-based plan, (Medallion Qualifying Dollars, or MQD in the lexicon) dropping flight-based awards such as Medallion Qualifying Miles and Medallion Qualifying Segments.

Even to reach the lowest-level Medallion status, Silver, will take $6000 of spending on Delta tickets next year. If you don’t fly much, you can make purchases on your Delta AMEX. Depending on which card you have, you’ll either get one MQD per $10 spent, or one per $20.

Delta advocates say the company had to make these changes. They argue that Delta had let customers hold onto their elite status the COVID pandemic when no one was flying. When these s elites returned to flight, the argument goes, they jammed all the lounges and sucked up all the upgrades. CEO Ed Bastian recently said, “It’s gotten to the point, honestly, where we have so much demand for our premium product and services that are far in excess of our ability to serve it effectively in terms of our assets…COVID almost doubled our Diamonds [members.]”

As Delta defenders say, “If everyone’s elite, no one’s elite.”

Unsurprisingly, many Delta “elites” do not accept this reasoning. Instead, they lashed out at the airline for devaluing their hard-earned status, won with dozens of flights and thousands of dollars. A commentor on my story who called himself “Goodbye Ed” (a dig at Delta’s CEO Ed Bastien) talked of how he was giving up on Delta. He wrote, “When an airline gives you the finger, you return the favor.”

The vehemence of the reaction seems to have surprised Bastien. “No question, we probably went too far,” Bastian told a Rotary Club crowd in Atlanta. “I think we moved too fast. And so we’re looking at it now. I’m not going to preview any of the changes that we might make, but we will be making modifications and changes, because it really matters to us.”

Perhaps hoping to capitalize on the controversy, smaller rivals Alaska and JetBlue pecked at the feet of the stumbling giant, offering status matches to fed-up Delta elites.

“We’ve always believed that loyalty is about more than just revenue and that earning elite status shouldn’t require a second mortgage,” said Brett Catlin, vice president of loyalty, alliances and sales at Alaska Airlines. “We’ve designed Mileage Plan to reward loyalty in its many forms which is why we offer guests the fastest track to elite status with no spend requirements.”

JetBlue was even more direct. “Following a refresh of the TrueBlue program that made earning Mosaic status easier and quicker than ever before, JetBlue is happy to offer Medallion members the loyalty that they deserve.”

The details of a status match with Alaska Airlines are here. Alaska breaks down the status match by Delta Silver, Gold, Platinum and Diamond Medallion.

JetBlue says, “For a limited time, Delta SkyMiles Medallions can join the JetBlue family with an exclusive offer to match their status to Mosaic.” The website adds, “Feeling “Blue” about the changes to a once-favorite loyalty program? We’ve got the answer. ” JetBlue says they understand that “Breaking up is hard to do. But who has to know? We’ve made it easy for you to cozy up to a new loyalty program and see where it goes. ”

How many rainmakers and road warriors will want to cozy up with JetBlue. It would be quite a switch from mighty Delta, whose 17.3% market share put it just behind leader American Airline. Alaska is the number 5 airline, with 6.2% market share, JetBlue, number six with 5.5%.

To put it another way, how many “elites” would want to leave Delta’s world-spanning fleet of 964 planes, including 159 widebodies, for JetBlue and its 290 narrowbodies, mostly Airbus A320 and A220s? Alaska has 310 narrowbodies, including 215 Boeing 737 variants and 77 Embraer regional jets.

How would an Alaska or JetBlue match the international service offerings of a Delta, American or United? Transpacific or Transatlantic service is limited for both JetBlue and Alaska. JetBlue has expanded its footprint across the Atlantic and is servicing London, Paris and Amsterdam from New York and Boston. Alaska has been building an international partner network with airlines like Condor and El Al, but it is unclear how that will work to build status within the Alaska Mileage Plan.

Still, both JetBlue and Alaska have considerable transcontinental and Latin American service. Each airline also has its selling points, like Alaska’s partner network and lounges. JetBlue offers well-priced Mint premium seating and comfortable Core (coach) seating, with free Wi-Fi and big video screens on every seatback.

And there’s a push as well as a pull; don’t underestimate the anger of a loyalist scorned.

Travelers may take a more critical eye towards what they’ve been paying for with dollars and loyalty. Delta was rated the top US airline in the 2023 Skytrax ratings, but the Atlanta-based carrier ranked just 20^th overall.

Despite the new terminals, immaculate jets, sparkling lounges and slick Medallion marketing programs, the airline business is a people business. As Bastien’s comments indicate, Delta has a lot of explaining to do with its most loyal customers.