✈️Program Evolution

Evolving Delta SkyMiles with Loyalteez

Delta SkyMiles has 100M+ members but constant devaluation erodes trust. Here's how to build airline loyalty with stable, portable rewards.

February 6, 202610 min readBy Loyalteez Team
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✈️

Delta SkyMiles: where your miles are worth less every year. What if loyalty meant stable value?

Delta generates $7.4 billion annually from selling miles to American Express. Customers redeem those miles at roughly 1.2¢ each. The airline profits on the spread—and every devaluation increases it. The result: "SkyPesos," constant value erosion, and a program optimized for the company, not the customer.

"Delta is essentially a financial services company that operates planes."

Here's how Delta could reward travelers with value they own—without the devaluation treadmill.


The Old Model: SkyMiles

Metric Value
Members 100+ million
Amex Revenue $7.4B/year
Mile Value ~1.2-1.3¢ (declining)
Liability $2-7B (estimated)
Basic Economy (2025) No longer earns miles

Elite Status Treadmill

Tier MQMs Required MQDs Required
Silver Medallion 25,000 $3,000
Gold Medallion 50,000 $8,000
Platinum Medallion 75,000 $12,000
Diamond Medallion 125,000 $15,000

The Devaluation History

2015: Shifted from distance-based to revenue-based. 2016: Award chart eliminated (dynamic pricing). 2020: MQD requirements increased. 2022: Partner redemptions devalued. 2023: SkyMiles value dropped ~15% year-over-year. 2024: Lounge access restrictions (partially reversed after backlash). 2025: Basic economy no longer earns miles.

The dynamic pricing problem: Same route can cost 15,000 miles or 150,000 miles depending on demand. No transparency. No planning. The program works against you.

The Math That Doesn't Add Up

For Travelers

  1. Unpredictable value — Dynamic pricing means you never know what miles are worth
  2. Constant devaluations — Saving miles is risky; they lose value over time
  3. Basic economy exclusion — Cheapest fares no longer earn miles (2025)
  4. Status stress — MQD requirements favor business travelers, exclude occasional flyers

For Delta

  1. Trust erosion — Each devaluation damages brand relationship
  2. Liability management — Billions in deferred obligations
  3. Amex dependency — Partnership drives majority of loyalty revenue

The Loyalteez Redesign

From Financial Product to Loyalty Protocol

Category Percentage Purpose
LTZ Token 1% Portable, universal—ecosystem distribution
Perks 2% Seat upgrades, lounge access, priority boarding
Total 3% No miles to devalue. No liability. No spread to optimize.

Everyone Earns—Including Basic Economy

On Loyalteez, every ticket earns LTZ. Every class. Basic economy, which earns zero miles today, would earn 1% LTZ. Message: "Every customer matters."

Travel Perks as Acquisition

Delta creates perks redeemable with LTZ. Customers earning LTZ across the ecosystem can access Delta perks. A coffee drinker's LTZ might unlock a Delta lounge pass. That's acquisition, not just retention.


How to Implement It

// Delta flight completion
await fetch('https://api.loyalteez.app/loyalteez-api/manual-event', {
  method: 'POST',
  headers: { 'Content-Type': 'application/json' },
  body: JSON.stringify({
    brandId: process.env.LOYALTEEZ_BRAND_ID,
    eventType: 'flight_completed',
    userEmail: passenger.email,
    domain: 'delta.com',
    metadata: {
      confirmation_number: booking.confirmationNumber,
      flight_number: flight.number,
      origin: flight.origin,
      destination: flight.destination,
      fare_paid: booking.totalFare,
      fare_class: booking.fareClass,
      // Crosswalk: Old model = 5x base fare in miles
      legacy_miles_equivalent: Math.floor(booking.totalFare * 5),
      // Loyalteez: 1-2% of fare value (stable)
      ltz_earned: Math.floor(booking.totalFare * 15)
    }
  })
});

See: Custom Events Guide


Before/After Summary

For Delta

Current Model Loyalteez Model
$2-7B liability Zero (expensed at transaction)
Constant devaluation pressure LTZ value is market-based—Delta can't devalue what customers own
SkyMiles retention-only Perks attract travelers from entire ecosystem
"SkyPesos" reputation Transparent value, trust rebuilding

For Travelers

Current Model Loyalteez Model
Save or spend anxiety (before next devaluation) LTZ value is stable—no urgency games
Dynamic pricing (15K or 150K miles, who knows?) Perks have clear LTZ prices
Basic economy excluded Everyone earns
Miles only work on Delta/partners LTZ works everywhere

The Headline

Delta generates $7.4B from selling miles that customers value at $4-5B.

That spread comes from somewhere: customer trust.

On Loyalteez: No miles to devalue. No liability to manage. No spread to optimize. No trust to erode.

Just value. Transparent. Owned. Portable.

The question isn't whether Delta can afford to change. It's whether they can afford not to.

See Also

Ready to evolve your loyalty program?

See how Loyalteez adds network reach to your existing program, making rewards portable across the ecosystem.