Delta’s big SkyMiles changes are all about the money: 5 things to know

Delta Air Lines is doing a major overhaul of its SkyMiles loyalty program to better reward the growing number of customers who use credit cards to buy everything from airline tickets to groceries and gasoline.

Details of the update were explained to members Thursday via an email and page on Delta’s website. Here are the five things you should know about the changes at Delta, Seattle-Tacoma International Airport’s second-most popular airline.

Dollars are king now, not miles

Delta will tie awards and redemptions to the single measure of “medallion qualification dollars,” or MQDs, from the current mix of miles, segments and dollars. Those MQDs will be the only currency that will allow SkyMiles members to reach status levels where they can earn more miles, get free upgrades, have some fees waived and secure priority boarding, among other benefits. It’s possible to earn silver status, the lowest level, without ever setting foot on a Delta flight. Members outside the U.S. will also earn status through only MQDs starting next year.

What you’ll need to meet premium level

Under the new system, it will take $6,000 MQDs to earn silver medallion status, $12,000 for gold, $18,000 for platinum and $35,000 for diamond. While it increases the status requirements from the current program by about half, members will be able to earn MQDs across a wider range of purchases, including some rental cars, hotels and vacations booked through the carrier.

The changes won’t affect current members’ 2024 medallion status; the changes that begin in 2024 affect status for 2025. Also starting Jan. 1, miles toward million-miler status will be calculated through lifetime flight miles and no longer by medallion qualifying miles.

Sky Club access will become more exclusive

Delta will impose limits on access to its Sky Clubs, after some were overwhelmed when the airline allowed members to retain their status level for several years when they weren’t traveling because of the pandemic. Anyone flying on a Delta basic economy fare, or the equivalent on a partner airline, won’t have club access as of Jan. 1. Nor will Delta SkyMiles Platinum and Platinum Business card members. Some other cardholders will see limits on the number of annual visits, with unlimited entries possible after spending a set amount on the card.

How your existing points will be converted

The change to MQDs starts Jan. 1. Flights on Delta and partner airlines will earn $1 MQD for each $1 spent for the fare. Depending on the co-branded credit card used, members can earn $1 MQD for every $10 or $20 they spend on purchases. Car rentals and hotel stays booked through Delta will also have a one-to-one rate.

Why Delta is doing this

After a series of enhancements to the program over the past 12 months, including free onboard Wi-Fi for members, Delta’s switch to one metric is a way to reward increasing use of the Delta-American Express and other credit cards. It will also encourage members to use Delta channels to book hotels and rental cars and other aspects of their trips. All this, while still preserving “the premium experience for our premium customers” is a priority, said Dwight James, Delta’s senior vice president for customer engagement and loyalty.

This story was originally published at bloomberg.com. Read it here.