Bad News: Delta Is Now Selling Basic Economy Award Tickets
It’s new, but it’s hardly shocking: Delta will now let you exchange SkyMiles for a Basic Economy (E fare) ticket, which was previously a cash-only product. For several weeks, Delta’s Book A Flight page has allowed the Basic Economy dropdown selector to remain in place when toggling between Money and Miles. Given CEO Ed Bastain’s recent comments on allowing passengers to use their SkyMiles in more ways, it wasn’t a stretch to put two and two together. BE award tickets have long been on Delta’s horizon. As of Thursday, they’re a reality, and that’s largely bad news for consumers.
In a weird way, the ability to only use cash for basic economy fares — which are littered with annoying restrictions — pushed the value of a SkyMiles award ticket higher. Even if Delta’s SkyMiles pricing increased for an award ticket, at least you could do no worse than a Main Cabin ticket, where you can still select your seat ahead of departure and be eligible for Medallion upgrades. Going forward, you’ll have to shell out even more for what used to be the baseline.
Basic economy fares are not yet enabled on all award routes. Certain ones, such as Pittsburgh (PIT) to Charleston (CHS), are already allowing SkyMiles purchases of BE tickets. On certain dates, BE pricing is shown as higher than main cabin — clearly, we’re in the early innings of the rollout and there are some quirks to be worked out.
There’s also one other mystery hanging in the balance for Delta’s highest two Medallion tiers, Platinum and Diamond. For those two tiers, they’ve long been able to cancel any SkyMiles award ticket up to 72 hours prior to departure and have the entire ticket value redeposited/refunded. In essence, this means that SkyMiles award tickets are as close to a refundable ticket as one could get for Platinum and Diamond members. As a Diamond, this is a remarkable perk that has saved me thousands in cancellation fees over the years. Even as the value of SkyMiles has declined, I’ve held onto this particular perk — which grants an immense amount of booking flexibility — as a reason to stay loyal to the program.
It’s unclear what side will win out now that BE fares are in the SkyMiles mix. Basic economy tickets, classified as E fares, have historically been non-changeable and non-cancellable after 24 hours. No refund, no partial value toward future travel. Nothing.
Will Platinum and Diamond Medallions be excepted from this policy, or will they need to pony up for pricier Main Cabin seats to ensure they can cancel their ticket up until 72 hours prior to departure? TPG has reached out to Delta for clarification and will update this post with a response, once received.
On one hand, this could be viewed as a positive — “A new way to spend fewer SkyMiles to travel!” — but there’s slim chance that actually happens. What’s more apt to happen is basic economy will become the new main cabin in terms of award pricing. It’s painful to admit, but Delta has been on a pretty deliberate path to force the value of a single SkyMile to $0.01. The outsized value that once ruled the program is being further diminished with this rollout. Long gone are the days when you could exchange 120,000 SkyMiles for business class travel between the United States and the Maldives on a mix of Delta and Korean Air metal.
Yes, this technically achieves Delta’s goal of giving you more ways to use your SkyMiles, but it’s a not-so-stealthy devaluation nonetheless. Fingers crossed that as more routes become active, we’ll see lower-than-ever pricing for BE award tickets while Main Cabin prices remain steady. If you aren’t willing to wait and see, now may be a great time to burn a few SkyMiles on main cabin award seats while they’re still the low rung on the totem pole.
For more on how to survive basic economy on Delta, check out our exhaustive guide here.
H/T: One Mile at a Time
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December 6, 2018 at 04:33PM