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Delta Air Lines (NYSE:) has announced adjustments to its SkyMiles program, responding to customer backlash over proposed changes that would have increased spending requirements for perks. The news was confirmed by CEO Ed Bastian on Thursday, stating that the company would reassess the program based on customer feedback.
The proposed changes had sparked criticism due to an increased focus on spending, including a $75,000 credit card spend requirement for unlimited access to SkyClub lounges and a doubled requirement for Medallion elite status. These alterations made it more challenging for frequent fliers to reach top levels such as Silver status, which under the new rules would require a minimum spend of $3,000.
The backlash is indicative of the delicate balance airlines must strike when modifying loyalty programs. While companies aim to increase profitability and reward high-spending customers, they also risk alienating loyal patrons who may not meet the higher spending thresholds.
Delta’s decision to adjust its SkyMiles program in response to customer feedback underscores the company’s commitment to maintaining a rewarding and accessible loyalty program for its frequent fliers. The specifics of these adjustments are yet to be released.
InvestingPro data reveals that Delta Air Lines’ market cap stands at an impressive 23.66B USD, reflecting its substantial presence in the industry. The company has also shown a promising revenue growth of 33.38% in the last twelve months till Q2 2023, reaching a total revenue of 55.75B USD. Despite a recent drop in price over the last three months, as indicated by the 1 Month Price Total Return of -13.56%, the company’s 1 Year Price Total Return shows a positive trend at 24.57%.
Furthermore, according to InvestingPro Tips, Delta is a prominent player in the Passenger Airlines industry with consistently increasing earnings per share. The company’s net income is expected to grow this year, a positive sign for potential investors. However, it’s worth noting that Delta’s revenue growth has been slowing down recently, and the stock has fared poorly over the last month.
For more detailed insights, investors can check out a host of additional tips and real-time metrics available on InvestingPro.
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