Delta Air Lines needs cash. Its SkyMiles program is one of its only remaining profitable assets. The airline is being smart in using it to secure new funding.
There could be a trickle-down effect from the elimination of fees to corporate travel management, but it’s unlikely business passengers were front of mind when the airlines made the call.
In the near future, airlines expect fewer business travelers will fly. That means they need to attract people going on vacation. And a lot of those consumers do not like change fees.
Because these are airlines, consumers will want to know: What's the catch. But there probably isn't one. Times are tough in the airline industry, and this is as good a time as any to end unpopular fees.
On most financials, Delta has been one of the two strongest U.S. airlines for some time. But it reported a massive second quarter loss. If it's this dire for Delta, how will the rest of the U.S. airlines fare? Here's a hint: Not well.
The messaging about the U.S. airline recovery includes some, shall we say, irrational exuberance. Sure, some people will always want or need to fly. But many more want to manage their risk, and that's hard to do when the United States can't control a raging pandemic.
Airlines are highly competitive businesses. Usually, the routes announced Thursday would engender a massive competitive response. But is there an appetite for that now? Hard to say.
Covid-19 will change the flying experience for a long time, as people take precautions to avoid getting sick. But it'll also change flying for another reason. Airlines are taking on considerable debt, and they'll need to cut costs as they try to repay it, at least until revenues improve.