Delta and American Express announced today that they are adding a second free checked bag benefit to several Delta co-branded credit cards, while keeping the existing annual fee unchanged.
For families who travel with a lot of luggage, this may be one of the most valuable changes in this update.
Which Cards Are Affected
According to Delta’s official announcement, the new benefit applies to the following personal credit cards:
Until now, one of the best-known airline perks on these cards was a free first checked bag.
After this update, eligible cardholders will also receive a second free checked bag benefit.
Official Announcement
Delta press release:
Delta said in the announcement that the goal of this change is to add more real travel value for Delta SkyMiles cardholders while keeping annual fees unchanged.
For travelers who frequently check two bags, this benefit is quite valuable. Based on Delta’s current checked bag fees, a round-trip trip could save you tens of dollars or more.
Analysis
In my view, this change actually reflects a common trend among U.S. airlines. Over the past few years, airlines have continued to raise various ancillary fees, and checked bag fees have increased especially noticeably. At the same time, airlines have become more reliant on co-branded credit cards to generate revenue.
That is why we see airlines raising checked bag fees on one hand, while packaging “free checked bags” as a credit card perk on the other. For airlines, this both increases revenue from non-cardholders and makes co-branded credit cards more attractive. Delta adding a second free checked bag this time is very unlikely to be the last such move. If the market response is positive, co-branded credit cards from airlines such as United and American could also see similar upgrades in the future.