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.
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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 Math That Doesn't Add Up
For Travelers
- Unpredictable value — Dynamic pricing means you never know what miles are worth
- Constant devaluations — Saving miles is risky; they lose value over time
- Basic economy exclusion — Cheapest fares no longer earn miles (2025)
- Status stress — MQD requirements favor business travelers, exclude occasional flyers
For Delta
- Trust erosion — Each devaluation damages brand relationship
- Liability management — Billions in deferred obligations
- 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
- Evolving Marriott Bonvoy — Another $7B liability case study
- Evolving Carnival VIFP — Travel loyalty without the treadmill
Ready to evolve your loyalty program?
See how Loyalteez adds network reach to your existing program, making rewards portable across the ecosystem.