Delta's Loyalty Program Overhaul Faces Turbulence, CEO Promises Adjustments

Delta Air Lines, Inc DAL CEO Ed Bastian has acknowledged customer backlash following recent changes to the airline’s loyalty program.

The modifications, which were meant to make the program more exclusive, have instead led to widespread dissatisfaction among Delta’s frequent flyers. 

In response, Bastian announced that the airline is set to make significant adjustments to the revamped program.

The overhaul of the loyalty program, announced earlier this month, was designed to grant elite status to customers based on their spending, a model akin to that of American Airlines Group AAL.

Bastian admitted, “No question we probably went too far,” and assured that Delta is working on modifying the program to address the concerns raised, CNBC reports.

The initial changes to the loyalty program were met with criticism as they appeared to prioritize higher spending customers, leaving many loyal flyers feeling undervalued.

JetBlue Airways JBLU seized this opportunity to offer status matching to disgruntled Delta customers, inviting them to experience JetBlue’s loyalty program.

Delta’s recent move to lower its Q3 profit guidance, as highlighted in a recent report, also underscores the broader challenges airlines are facing in a post-pandemic landscape.

Price Action: DAL shares are trading higher by 0.52% at $36.85 on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.