Color me surprised: American Express just made a couple of tweaks to its suite of Delta SkyMiles co-branded credit cards that genuinely make them more valuable – and all while leaving annual fees untouched.
Here's a look at what's new:
- A second checked bag free: *delta skymiles gold*, *delta skymiles platinum card*, and *delta skymiles reserve* consumer and business cardmembers will receive a complimentary second checked bag, but only on domestic Delta-operated flights
- $120 annual rideshare credit expands: Delta SkyMiles Gold and Gold Business cardmembers will gain access to a new $120 annual rideshare credit after card renewal, with up to $10 in monthly statement credits on eligible U.S. rideshare purchases with select providers (enrollment required). This benefit was previously reserved for the pricier Platinum and Reserve Delta cards.
- New card design: To celebrate 30 years of partnership between Delta and American Express, the bank rolled out sleek new card designs across the portfolio, including a new slate grey color for the Delta SkyMiles Reserve and Reserve Business Cards.
- No annual fee increases: Even while adding new benefits, the cards' current annual fees aren't changing.
The second checked bag free benefit is no doubt the star of the show here.
While most travelers probably aren't already checking a second bag on each and every domestic trip, they might now. From skiers to golfers to big families to retirees shlepping back and forth between their winter escapes and summer homes, I'm sure there are plenty of people who will see this as a worthwhile new perk. With Delta (and every other major U.S. airline) raising checked bag fees in recent months, you'll now pay $45 for your first checked bag and a whopping $55 for a second bag on domestic itineraries.
With the addition of this new benefit, you could be looking at a $200 savings on a roundtrip domestic flight just for carrying a Delta Card. That said, there are two important caveats:
- Again, the second bag free benefit only applies to Delta-operated flights within the U.S. – not on international flights, as is the case with the longstanding first checked bag benefit.
- Unlike that first checked bag perk which passes down to up to eight other passengers on the same reservation, only other eligible SkyMiles cardholders on your reservation will get a second bag free
Giving cardholders an easy way to avoid those recently increased bag fees might seem counterproductive to Delta's bottom line … until you think about the bigger picture: Credit cards are everything to airlines. Last year, Delta reported $8.2 billion in revenue from American Express and its co-branded credit cards – without it, the Atlanta-based airline would hardly be profitable.
Simply put: The airline needs to continue giving travelers reasons to add and keep a Delta SkyMiles card in their wallet. And it's pretty easy to assign a dollar value to free bags.
But Delta and Amex didn't stop there. They also sweetened the deal by giving travelers with the *delta skymiles gold* (and the card_name) up to $120 per year in rideshare credits. This perk has been available for a couple of years now on the pricier SkyMiles Platinum and Reserve Cards.
Just like those existing rideshare credits, this new benefit is split into chunks of up to $10 per month. Will that cover an entire Lyft or Uber? Not likely, but even if you only use these services a handful of times per year, getting $10 off your ride can amount to real savings and further justify keeping these cards in your wallet for the long haul.
Unfortunately, this credit won't be available to new applicants right away. You'll have to wait until your second year of membership (after renewal) to start saving $10 per month on rideshare services like Uber, Lyft, Curb, and Alto. But if you've carried a SkyMiles Gold Card for more than 12 months now, you can start taking advantage of this new benefit immediately – just make sure you enroll online in your Amex account first!
Finally, Amex is giving each SkyMiles Card (including the entry-level *delta blue*) a minor facelift.
While a fresh card design does little to increase the overall value proposition, it has proved wildly popular in the past. A couple of years ago, the bank rolled out a limited-edition Reserve Card made from the metal of a scrapped Delta Boeing 747, and travelers everywhere raced to get their hands on one.
I'm not saying these new designs will have quite the same impact as a card made from an old airplane … but it's definitely a proven marketing strategy.
If you're stuck wondering why all of the sudden changes, I've got a hunch.
This news comes on the heels of its biggest competitor (United) making recent updates to its own cards – more or less making them essential for anyone who earns and redeems United miles. A couple of those cards already include two free checked bags – and it seems likely Delta is trying to avoid losing ground (and money) to United.
And it bears repeating that all of these changes come without the fee hikes we've grown accustomed to over the years. For Delta flyers with a SkyMiles credit card already in their wallets – or anyone considering adding one – these new perks are genuinely good news.
Add in existing benefits that (fortunately) didn't hit the chopping block, like an annual Delta Stays credit, 15% discount on award tickets, priority boarding, and there are plenty of pathways to make back your annual fees on these cards.
Featured image courtesy of American Express
