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Delta Air Lines (DAL) is changing its Sky Club lounge access rules and how customers can qualify for elite status levels.
The company announced that premium American Express (AXP) cardholders no longer have unlimited access to the Delta Sky Club lounge. Customers with Delta SkyMiles Reserve American Express credit cards are only allowed ten visits to the lounge per year, while Delta SkyMiles Platinum American Express cardholders are only allowed six visits per year.
Yahoo Finance's Pras Subramanian, Josh Schafer, and Alexandra Canal discuss how Delta’s new changes may impact customer loyalty.
Video Transcript
PRAS SUBRAMANIAN: Another story that I'm watching is medallion members in uproar. Delta SkyMiles. I'm a member of Delta SkyMiles. They're making it hard-- I'm going hard here. They're making it harder to get status now.
So in order to get even Silver, Gold, and let alone Diamond, miles don't matter. It's all about cash. How much money are you spending. And then, here's the kicker, man. Lounge access.
They're restricting lounge access. People who own the Delta Reserve Amex Card and the regular Platinum Amex Card, Delta reserved only 10 visits a year. Platinum, Amex Platinum, six visits a year. Six, what? That's like-- that's crazy.
JOSH SCHAFER: If the viewers at home can't tell, Pras, what lounge do you use when you go to the airport?
PRAS SUBRAMANIAN: I go to the Delta lounge. But one other thing. If you buy a basic fare, even with Platinum Amex, cannot enter the lounge.
ALEXANDRA CANAL: Wow. And my mother loves going to an airport lounge. That is the reason that she has an American Express.
So Amex-- yeah, the Platinum. And a lot of people do it for that reason, for the convenience of it all. And for the miles and the--
PRAS SUBRAMANIAN: Changes your life.
ALEXANDRA CANAL: It does. And I bet you, consumers are not going to be--
PRAS SUBRAMANIAN: I want to ask you mom. You've got to ask your mom.
ALEXANDRA CANAL: Yeah, I will.
JOSH SCHAFER: You know who's going to be upset, too? It's the business traveler, right?
PRAS SUBRAMANIAN: Oh, big time.
JOSH SCHAFER: It's George Clooney up in the air, right?
ALEXANDRA CANAL: Yeah, that's another movie.
PRAS SUBRAMANIAN: Yes.
JOSH SCHAFER: Think about it. A guy like that gets to go to the lounge. He gets a bunch of miles just simply by business traveling, right?
And there's a lot of people that get sucked into that Delta ecosystem with American Express. A lot of business customers. And you just wonder where does that probably wealthy businessperson take their business, because a lot of people stay in that ecosystem for personal travel too, right?