Delta CEO says carrier went ‘too far’ with SkyMiles changes, promises adjustments after frequent flyer backlash

Delta Air Lines CEO Ed Bastian said the airline will make “tweaks” in the next few weeks to its loyalty program following a recently announced overhaul that will make it more expensive for many travelers to obtain elite status. Access to airport lounges. Backlash from customers.

“There’s no question we probably would have gone further,” Bastian said at the Rotary Club of Atlanta on Monday.

The program changes, which Delta unveiled earlier this month, will reward customers with elite status based on how much they spent, a model similar to that of American Airlines, and reduce access to Delta’s popular Sky Club lounges at Delta Airport for many American Express cardholders. .

JetBlue Airways tried to capitalize on some customer anger over Delta’s changes by offering frequent flyer status matching, saying “we’ve made it easier for you to adapt to a new loyalty program and see where it goes.”

Delta is struggling to cope with rising numbers of elite passengers, fueled by pandemic and post-pandemic spending, and crowds of travelers trying to enter its lounges, leading to long lines for many customers. The airline and rivals including American and United are racing to build larger lounges at airports to cater to growing numbers of big spenders.

Bastian said the airline will announce updated software changes in the coming weeks. A Delta spokesperson declined to comment further on the changes.

“We have frankly reached the point where we have significant demand for our premium products and services that far exceeds our ability to serve them effectively in terms of our assets,” Bastian said.

During Covid, the airline doubled the number of Diamond Medallion status members, he said.

David Neeleman, CEO of Breeze Airways and founder of JetBlue, told CNBC on Wednesday that he has Delta Medallion status and that he tries to use Delta’s airport lounges but sometimes “there’s a huge line and it’s not worth it.”

Delta last year announced several changes to eliminate overcrowding in clubs, such as prohibiting employees from using them when flying standby with the company’s travel privileges, even if they have eligible credit cards. The Atlanta-based carrier also raised club membership prices for frequent customers.