No rewards for you! Watch out as Delta modifies its basic economy rules once more

If you're a traveler who tends to snag the lowest fares, take note. Delta has introduced significant new restrictions that may cause you to reconsider booking its basic economy tickets.

Recently, the Atlanta-based airline quietly updated its website to indicate that basic economy fares will no longer accumulate award miles in the SkyMiles program or contribute to Medallion elite status. This change applies to tickets purchased after Dec. 9, 2021, for flights taking off on or after Jan. 1, 2022.

Additionally, Delta is discontinuing its flexible travel waiver for basic economy while introducing a new cancellation option.

No more SkyMiles or Medallion-qualifying credits for basic economy fares

Until now, Delta's basic economy fares allowed travelers to earn Medallion Qualification Miles, Segments, and Dollars just like traditional discounted economy fares. This meant a minimum of 5 miles per dollar spent on airfare, with MQDs based on total expenditure and MQMs and MQSs reflecting your travel distance. However, this will no longer be the case moving forward.

While Delta has stated that it will still provide elite-qualifying credits for award tickets in 2022, newly booked basic economy flights will be excluded from this benefit.

Delta was the pioneer among legacy airlines in offering basic economy fares and now leads the way in implementing these new restrictions. In January 2021, American Airlines ceased granting elite-qualifying miles, segments, and dollars for basic economy fares but continues to award miles for those tickets. Meanwhile, United Airlines still provides miles based on fare and MileagePlus status, as well as full Premier qualifying points, lifetime miles, and credit towards the four-segment minimum.

Currently, you can still earn 20% of the miles flown when crediting basic economy fares to Air France-KLM Flying Blue and 50% of the miles flown when crediting to Virgin Atlantic Flying Club. However, it wouldn't be surprising if these programs also decide to eliminate earnings for Delta's basic economy in the future.

Basic economy fares can now be canceled — but there’s a twist

When COVID-19 hit the U.S. in early 2020, airlines rolled out travel waivers allowing modifications to all tickets, including basic economy, without fees. However, as vaccines became available and travel resumed, airlines have started to let those waivers expire over the past few months.

Delta has been one of the more accommodating airlines, extending its basic economy flexibility waiver for flights through Dec. 31, 2021. Unfortunately, this flexibility is set to diminish.

Beginning in 2022, Delta’s basic economy fares will no longer be changeable, though they won’t be as restrictive as they were before the pandemic.

Going forward, basic economy fares can be canceled for partial travel credit. For domestic flights or those to the Caribbean, Central America, or Mexico, a $99 fee will be deducted from your ticket’s value. In contrast, basic economy fares originating in the U.S. or Canada to any other international destination will incur a $199 fee.

For basic economy award tickets, the cancellation fee is 9,900 miles for domestic trips (within the U.S. and Canada) and 19,900 miles for international journeys. These equate to approximately $147 and $295, respectively, according to TPG's valuation data. Delta has confirmed to TPG that these fees will not be waived for elite members. Previously, Platinum and Diamond elites enjoyed complimentary award cancellations, but Delta noted that only 2% of basic economy buyers are Medallion elite members.

A Delta representative also shared this statement:

Basic Economy fares are intended for those focused on price, and we understand that even our most budget-minded customers appreciate flexibility. Travelers needing to cancel their Basic Economy plans can easily modify their arrangements through delta.com or the Fly Delta app and may apply a portion of their canceled ticket's value to future travel.

In comparison, United allows passengers to upgrade basic economy tickets to standard economy, making them freely cancelable for as little as $45.

In summary

While Delta was the pioneer in offering basic economy fares, they haven't been particularly unfavorable historically. Passengers could still bring a full-size carry-on along with a smaller personal item and enjoy the same food and service as those with standard tickets.

However, following today's announcement (or lack of one), Delta's basic economy fares will become considerably more restrictive compared to some rivals—at least regarding loyalty benefits. On the other hand, Delta's basic economy flights will consistently provide more flexibility than other airlines’ basic economy options, though at an extra cost.

When American Airlines eliminated the option to earn elite-qualifying credits on basic economy fares, it also allowed elites to retain all their typical benefits, such as upgrade options and free (or discounted) seat selections. Additionally, it permitted regular travelers to pay more for seating and priority boarding.

While it's a nice gesture that Delta allows cancellations for basic economy fares, a $99 fee is steep, particularly when some domestic fares are quite low. It’s also disappointing that the cancellation fee for basic economy awards will not be waived for Platinum or Diamond elites.

While you still won't be able to pay for upgrades to premium seats or priority boarding, you can mitigate some of the downsides of basic economy with a cobranded Delta credit card. Most Delta credit cards offer perks like a free first checked bag and priority boarding.