American Express on Thursday introduced several updates to its Delta SkyMiles credit card that will offer users even more benefits. The deal is part of Delta Air Lines’ efforts to assuage hurt customers who are considering leaving the airline after last year’s SkyMiles loyalty fiasco.
However, the update comes with a hefty annual fee, but AmEx says it believes the new benefits will more than pay for itself.
New York-based Amex offers $200 flight credits after spending a certain amount, $120-$240 restaurant credits at restaurants booked through Resy, and $120-$240 restaurant credits that can be used on ride-sharing apps like Lyft and Uber. Add dollar credits to your card.
Top cards also give users $2,500 in “Medallion Qualification Dollars” to move them closer to the airline’s elite status.
Additionally, Delta Air Lines cardholders will be able to use their companion certificates on a wide range of flights, including not only the continental U.S. but also Hawaii, Alaska, Mexico, the Caribbean, and Central America.
There have been complaints in the past that Delta has overly restricted the use of these certificates.
Atlanta-based Delta Air Lines and Amex have had a deep business relationship going back decades, which has benefited both companies. Amex customers enjoy access to Delta’s airport lounges and the ability to transfer Membership Rewards points to Delta, among other benefits.
In return, Delta earned $6.8 billion from American Express in 2023 as part of a co-branded credit card partnership. This money comes from fees that AmEx collects from the billions of dollars that cardmembers spend on their cards.
To give a sense of scale, Delta Air Lines CEO Ed Bastian told investors in June that roughly 1% of the entire U.S. economy is spent on Delta credit cards. Told.
So when Delta Air Lines changed its SkyMiles loyalty program last year, Delta customers largely saw it as a watering down of the program. As part of these changes, Delta customers were required to spend large amounts of money on airfare and Delta credit cards in order to earn elite status with the airline.
Delta Air Lines also planned to limit the number of times customers can enter lounges based on their status.
Immediately after the announcement, message boards were filled with AmEx customers saying they were ready to cancel their cards due to Delta’s changes.
Bastian has since apologized for the changes, and Delta has either withdrawn some of the proposed changes or delayed them for another year.
AmEx typically works on credit card renewals with an 18- to 24-month lead time, and the changes announced Thursday were in the works before Delta Air Lines made changes to its SkyMiles program.
But the changes come at a time when both companies want to make sure they retain the people who shouted “I’m done with Delta” on social media after last year’s SkyMiles changes.
“These cards offer many new benefits to help consumers and business owners move closer to Medallion status, take advantage of new credits and more value, and enjoy a premium travel experience,” Amex said. said Howard Grossfield, president of U.S. Consumer Services.
New benefits come with a higher annual fee. The Delta Gold Card’s annual fee ranges from $99 to $150, the Delta Platinum’s annual fee ranges from $250 to $350, and the high-end Delta Reserve’s annual fee ranges from $550 to $650.
