Delta’s loyalty modifications are even worse than initially introduced

There are no two ways about it: Delta’s upcoming SkyMiles changes are pretty brutal for most flyers — but they’re actually even worse than originally expected.

Delta will significantly reduce partner airline earning rates.

Beginning next year, the airline will exclusively award status based on how much you transact with the airline through Medallion Qualifying Dollars (or MQDs).

While you primarily earn MQDs at a 1:1 rate for how much you spend on Delta airfare (before taxes and fees), the airline is expanding the list of transactions that’ll award MQDs; this will include cobranded credit card spending, hotel and rental car bookings made through Delta and Delta Vacations packages.

Despite the longer list of MQD-earning activities, the airline is raising the thresholds required for status to levels previously unheard of in the U.S. airline industry. (Think $35,000 a year in Delta spending to earn top-tier Diamond status.)

Historically, one of the best ways to quickly rack up MQDs has been through booking tickets with Delta partners. When you credit a ticket issued and operated by an eligible partner to your SkyMiles account, you earn MQDs based on a function of what fare class you purchased and how far you flew.

Savvy flyers know to look for inexpensive partner fares in high-fare classes and on long routes to boost their MQD balances.

While this might’ve been the case in the past, there’s some even more bad news for Delta flyers: The airline is reducing the number of MQDs you’ll receive from many partner-issued tickets beginning on Jan. 1, 2024, as confirmed by a carrier spokesperson.

As part of the program updates, Delta published updated mileage earning charts for flights operated by its airline partners.

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While much of the focus has been on the SkyMiles changes that Delta announced in its press release, these updates, which have mostly flown under the radar, might sting even more for some frequent flyers.

In order to crunch the data, I looked at the MQD earning rates for all seven of Delta’s “core” partners and its 14 “non-core” partners. The results aren’t pretty.

Across the “core” partners, 106 of the 204 eligible fare classes will earn fewer MQDs as of next year. That equates to just more than half of these fares, which will undoubtedly make it even harder to hit Medallion status next year and beyond.

In case you’re wondering if Delta’s balancing these reductions with some increases, it’s not: Just 21 of the 204 eligible fare classes will see increased MQD earnings as of 2024.

The changes aren’t as drastic with Delta’s non-core partners, but the results are still pretty lopsided. Of the 256 eligible fare classes, 36 of them will earn fewer MQDs in 2024 and beyond. (Just four fare classes will earn more MQDs after Jan. 1.)

Diving into the changes themselves paints a bleak picture for anyone wanting to find sweet spots in the SkyMiles program through partner bookings.

In the past, one of my favorite ways to quickly boost my Medallion status has historically been through discounted Aeromexico bookings.

For instance, a TPG editor once bought a $1,900 Aeromexico business-class fare that covered 13,155 “butt-in-seat” miles. He credited his flights to his SkyMiles account and earned a whopping $5,262 MQD based on a 40% MQD earning rate for discounted Aeromexico biz fares.

Starting on Jan. 1, that same ticket would only earn $3,947 MQDs. That’s still more than the roughly $1,900 MQDs you’d earn if you booked the ticket directly through Delta, but it still represents a big hit to those who used to search far and wide for so-called “MQD runs.”

Frequent flyers have historically used these “MQD runs” to boost their MQD balances toward the end of the qualification year.

Fortunately, no fare class has decreased by more than 10%, but that’s just a small silver lining to the larger devaluation. You’ll find the full table breaking down Delta’s changes at the bottom of this post.

Note that the airline says the earning rates for redeemable miles and Medallion bonus miles for partner bookings are unchanged.

Delta CEO Ed Bastian recently admitted that the airline may have overdone the changes, saying that the airline is considering walking back some of the updates.

We’re still a few weeks away from learning more about what revisions, if any, Delta will make, but going back to the original MQD-earning rates could be a great start.