This isn't new, but I just saw it today. On Delta airlines, miles flown are no longer the metric for earning elite status:
Beginning next year for the 2025 travel year, Delta will have just one metric for earning status: money. Money spent on Delta tickets, vacation packages, hotels and car rentals booked through Delta and spending on Delta’s SkyMiles credit cards.
The spending on Delta’s American Express cards is staggering—nearly 1% of the entire U.S. gross domestic product, Bastian said in June. The airline hopes these changes generate an even larger gusher of cash.
Delta will collect nearly $7 billion in revenue from American Express this year from the sale of miles, ancillary services and brand fees. Its long-term goal is $10 billion. That’s nearly equal to the amount the airline generated from flying passengers in 2022.
Delta now makes about as much money from its credit cards as it does from actually flying people around—and I imagine they aren't the only ones. Is it any wonder that airlines seem to care so little these days about the business of hauling ordinary people from place to place?
Funny but Delta is far better then most at the job of flying.
Indeed. I was in Kevin's neck of the woods last week and Delta seemed to be firing on all cylinders.
Recently I flew from Portland, OR to London Heathrow and back on British Airways (Airbus). The seat rows are so cramped I almost could not move for 10 hours or so. Of course, the mother-daughter couple in the row in front of me both moved their “seat backs” to the reclining position, further imprisoning me. On top of that, after I booked the flight, I had to BUY A SEAT because, you know, booking passage does not guarantee you a place to sit.
I always consult seat guru before I book a long flight. also I'm old enough not to have to count my pennies so I book Premium economy.
Of course, the mother-daughter couple in the row in front of me both moved their “seat backs” to the reclining position
They paid for that modicum of extra space, just as you did: you're capable of clawing it back by reclining yourself. It's not as big a deal on short flights, but on long hauls, some of us need to sleep (or at least attempt to) to deal with jet lag.
Not really. Most airlines advise that passengers ASK the people behind them before reclining. You may have a right to recline because the recline button is on your seat. Nonetheless, if you insist on using that "right" with complete disregard to the people behind you, then you're kind of a jerk.
Buying an airline ticket does guarantee you a place to sit. The cheapest tickets don't allow you to choose your seat.
Reminds me of 2007-2008 when we learned that GM wasn't so much a car making company as it was a car purchase financing company.
The Wendover Productions channel did a video on this a while back. IIRC Southwest Airlines is the same way - the value of their credit card business is bigger than the business they get from flights.
Finance is a parasite on the economy.
Yeah, this.
A dash of finance is necessary. But it should never be more than a few percent of the economy, more akin to accounting.
...just reflecting on it for a minute, I can't decide if automated advertising is more corrosive than finance. It is a tough competition. Nothing corrupts like money, which buys ads. But ads have a lot of power, too, and generate a ton of money for shady use.
Well there's only so many first class seats available.
The awfulness of flying is a very powerful argument for the development of HSR. It's simply vastly more comfortable and convenient in every way imaginable (way more leg room, smoother ride, vastly faster for boarding and exiting, taking as much luggage as you want is a breeze, lower cost). But we can't have it because reasons.
(And yes, I'm well aware HSR doesn't provide a viable alternative for longer flights, but for anything under 1,200 miles it's pretty competitive.)
In this case, people probably only use their Delta card because they fly Delta, so Delta has to maintain the one side of its business to keep making money on the other side.
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The fact is that the business of flying people from place to place is not very profitable. Air tickets are generally much cheaper (adjusted for inflation) than they were during the age of regulation; in order to get to "much cheaper" the airlines have cut costs everywhere they can, which has led to lousy customer service and cramped seating, but they're still not, as a group, making profits that amount to a reasonable return on equity.
Bottom line; if you want better service and/or more spacious seats, be prepared to pay for them. Most of the travelling public goes for lowest cost, and puts up with the resulting inconvenience. At least even the longest flights only last for eighteen hours or so.