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Delta to switch to price-based loyalty program

Thursday, 27 February 20143 min read

In a major revamp of its frequent flyer program, Delta Air Lines is moving away rewarding customers purely on the number of miles flown to one that rewards flyers based on dollars spent.

Mileage points will be earned on the base fare and added fees imposed by the airline, but not on government taxes and fees.

Depending on the current status in the SkyMiles loyalty program, customers can earn between 5 and 11 miles for every dollar spent.

The changes will take effect on Jan 1, 2015.

The move is to give more recognition to Delta’s higher spending frequent flyers and those who travel less frequently but buy higher priced premium fares.

It is also an attempt to attract more of the lucrative business travel market.

There will be five levels for mileage redemption in the new program designed to offer "a wider variety of awards and improve overall availability at the lowest price points," Delta said.

There will be no changes made for miles already accrued by Delta customers.

The carrier said the policy of no black-out dates and access to any seat on all Delta flights for reward flights will continue.

Delta is not the first carrier to award points on money spent – JetBlue and Virgin America also have price-based loyalty programs.