In light of the news that American Airlines is changing to a revenue-based award earning structure, and the fact that all three major US carriers now abide by a revenue-based award earning structure, I am writing a series of posts about when and where you should diversify the award miles you earn through paying for airfare. This post is Part 3, and discusses when and to where you should diversify your award earning when flying paid tickets on Delta flights.
“When & Where You Should Diversify Revenue Ticket Miles” Series Index
- Part 1 —Flying American Airlines
- Part 2 — Flying United Airlines
- Part 3 — Flying Delta Air Lines (this post)
In January of 2015, Delta switched to a revenue-based award earning structure that is much like the structure American Airlines’ is adopting come this August. The amount of Delta miles you earn flying Delta flights is based on two things: the ticket price less any government imposed taxes or fees, and the elite status you have with the airline.
A revenue-based award earning structure is worse for folks who fly far, cheap tickets and better for people who fly short, expensive tickets. That is, at least, if we’re talking about crediting to Delta SkyMiles. But it is not obligatory to do that–you can enter your frequent flyer number with any United partner instead.
- When should I choose to credit my award miles to Delta?
- If not Delta, then who?
I’m going to dive into both questions here to help equip you with the knowledge to make these decisions in the future.
Note that this post is specifically referencing the award miles earned from flying Delta flights. The amount of Delta miles you can earn flying a SkyTeam Alliance or other partner airline will be based on flight distance and the purchased fare class– see Delta’s website for partner-specific information.
When Should I Choose to Credit my Award Miles to Delta?
The simple answer to this question: Not when you’re buying a cheap economy ticket, but maybe if you’re buying an expensive premium cabin ticket. Delta’s revenue-based award earning system rewards those who generate more revenue for Delta, point blank.
The more correct answer to this question is: when the math works out, and when you’re not chasing or trying to maintain status. Before I go any further, let me explain what I mean by the latter part of that sentence.
The value of status miles will factor into the decision too (in Delta’s case, they are called Medallion Qualification Miles), if you’re trying to get or maintain Delta status. For example, even if a Delta Diamond Medallion elite earns fewer Delta redeemable miles by crediting their butt in seat miles to Delta over Alaska Airlines, he might still prefer it to boost his Medallion Qualification Mile balance.
But if you’re not concerned with status, then all that should matter to you is the math.
To figure out how many Delta miles you’ll earn flying their planes, use the following equation:
Status multiplier x (ticket price – government-imposed taxes/fees) = award miles earned
The status multiplier depends on what tier elite status you have with the airline:
- 5x– SkyMiles member
- 7x – Silver Medallion
- 8x – Gold Medallion
- 9x – Platinum Medallion
- 11x– Diamond Medallion
We know the ticket price is how much delta.com tells us the flight costs.
But how can we isolate the government-imposed taxes and fees from that price? ITA Matrix. If you’re not familiar with ITA Matrix, here’s how to use it— it will show you the breakdown of a ticket by base fare, fuel surcharges, and government-imposed taxes and fees.
This is a good example of the kind of cheap revenue ticket readers of this blog would buy, because it’s an example where you might be better off paying for the flight in cash rather than using miles that could be put towards higher value redemptions.
The dollar amounts outlined in the red rectangle are the government-imposed taxes and fees (sum =$114.56). Fuel surcharges are always labeled as either YR and YQ (in this case YR). Fare 1 and 2 are the base fares in each direction of the roundtrip.
Now we can plug in our equation.
5 x (595.56 – 114.56) = 2,405
So, assuming you are just a normal SkyMiles member without status, you would earn 2,405 Delta miles for flying about 13,750 miles on a Delta plane.
Even if you are a Diamond Medallion elite, you would only earn 5,291 Delta miles on this ticket.
But let’s say you purchased a Business Class ticket on the same flight, which costs $5,054.06 (oh yea, now I remember why I collect miles!). Your equation would look like this:
5 x (5,054.06 –114.56) = 24,698
Then you would certainly want to credit those miles to Delta, because you cannot beat that crediting to any other partner. It is easy to see how this system rewards those that spend more. But I assume the majority of us will find ourselves with something closer to the first equation’s answer most of the time.
When it comes time for you to make this decision, plug your own numbers in. Compare this first solution to the number you get from multiplying the distance you will fly by the percentage that corresponds to your fare class, which you can gather from the table in the “If Not Delta, Then Who?” section below.
If the first solution is greater than the second solution, stick with Delta. Otherwise, read on to see your options for crediting to other partners.
If Not Delta, Then Who?
I compared award earning charts when flying Delta from the following partners to see whose is the most lucrative:
- Alaska Airlines
- Air France
- Garuda Indonesia
- Korean Air
- Virgin Atlantic
- Virgin Australia
I chose those loyalty programs because they have at least some valuable redemption options. The table below is the analysis of my comparison:
Again, the following conclusion is not considering the incentive of status. If you’re aiming for or trying to maintain status with one of Delta’s partner airlines, than perhaps the elite qualifying miles earned from crediting to that partner matter more to you than redeemable miles.
That being said, the best alternative airline to credit miles to when flying Delta is going to depend on what type of miles you value more– Alitalia, Alaska, Virgin Atlantic, and Virgin Australia all offer good earning rates on discounted economy fares (which are the most common types of tickets people like you and I buy). Click here to read about the top 11 most valuable miles to me.
I would choose to credit my miles earned from flying the discounted fare example above, between Seattle and Zurich (fare class V), to Alaska Airlines Mileage Plan because I value those miles much more than Alitalia, Virgin Atlantic, or Virgin Australia miles.
If your fare class is not one associated with a discounted economy ticket, then check out the table above to see the best option for you depending how much you value the miles from the top earning loyalty programs.
Best Card to Buy Airfare With
Your top choice for buying Delta tickets should be the Citi Prestige® Card, since it comes with a $250 Air Travel Credit every calendar year that applies to airfare. If you haven’t used the credit yet, buy the fare with your Prestige, and you will receive an offsetting credit on your next statement.
Even if you’ve already used your $250 credit for this year, the card offers 3x on all airfare purchases, which is a higher category bonus than what any of the Delta’s co-branded cards offer for buying their own plane tickets (2x).
See my review of the Citi Prestige Card which explains its many components like its annual $250 Air Travel Credit, 50,000 point sign up bonus, access to the American Airlines Admirals Clubs and Priority Pass lounges, 3x points per dollar on air travel and hotels, and a $450 annual fee.
If you’re like me and only spend cash on the cheapest of airfares, then it is very likely you will not want to credit the miles you earn from flying Delta to SkyMiles since the airline uses a revenue-based award earning structure. If you haven’t started an account with Alaska Airlines’ frequent flyer program Mileage Plan, then do so today. Out of Delta’s partners, it is likely the most valuable program to funnel your miles into.
If you want to jumpstart that Alaska miles collection, sign up for the Alaska Airlines Visa Signature card. Earn 30,000 bonus miles after spending $1,000 within the first three months of opening the account.
While I can not directly link to Alaska Airlines Visa Signature card, you may find it by clicking below if you decide to apply. (I receive a commission, and your support keeps this blog going.)
Editorial Disclaimer: The editorial content is not provided or commissioned by the credit card issuers. Opinions expressed here are author’s alone, not those of the credit card issuers, and have not been reviewed, approved or otherwise endorsed by the credit card issuers.
Earn 60,000 bonus American Airlines miles after spending $5,000 in the first three months on the Citi® / AAdvantage® Executive World Elite™ MasterCard®. Plus get American Airlines lounge access for you and guests. My full review of the card.