Summary

  • Delta SkyMile might be valued at a CPM (cost per mile) of 1.1 to 1.2 cents, depending upon the metric used for calculation.
  • Varying factors such as the price of an airline ticket can influence SkyMiles valuations from 0.8 to 1.6 cents.
  • The TakeOff 15 benefit can increase the CPM of Delta SkyMiles to 1.4 cents.

Delta SkyMiles is one of the largest loyalty programs ever. The fact that it can be earned quite easily adds to its popularity. There are several ways you can earn the Delta SkyMiles- you can opt for certain credit cards, earn with SkyTeam and partner airlines, or through hotels and car hire. You can use SkyMiles to get free flights, too.

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The more Starbucks credits you reload, the more SkyMiles you earn.

Earning a certain number of SkyMiles can also earn you a certain elite status, such as the Medallion Silver, Medallion Gold, Medallion Platinum, and Medallion Diamond. All of these elite status come with their own perks. The Diamond Medallion, for example, gives access to an exclusive VIP phone line dedicated to Diamond Medallion members. Other status types come with their own advantages. In light of such wonderful perks you can get out of Delta SkyMiles, one has to wonder how much Delta SkyMiles are actually worth. Let’s find out.

Delta Air Lines B767-300ER taking off

Photo: Vincenzo Pace | Simple Flying

Is there a Delta SkyMiles calculator?

One of the questions, whose answer is highly sought after, is whether there is an objective way to know how many dollars/cents a certain number of miles is worth. For example, if you have 10,000 Delta SkyMiles, can you convert them into “x” cents or dollars? The answer to this rather straightforward question is a tad complex.

A rough figure of 1.1-1.2 cents?

Internet literature on the subject shows that one Delta SkyMiles is worth 1.1 to 1.2 cents. There are calculators devised by many publications that don’t point to an exact number but a narrow spectrum worth the figures quoted above. But how does one come to such a conclusion? Let’s dig in a tad deeper.

Delta-SkyMiles-Upsizes

Photo: Denver Airport Newsroom

The method to arrive at the figure of 1.2 cents

The evaluation of a certain “mile” valued at certain cents is known as CPM or cents per mile. To put it mathematically,

Cents per mile (CPM) = Cost of flight in cash/cost of the same flight in miles

NerdWallet uses the mathematical equation above and then averages the CPM out for a vast number of flights. Applied specifically to Delta SkyMiles, the publication arrives at a baseline figure of 1.2 cents per mile. The publication comments about the method used:

“ We collected hundreds of data points comparing the cash value to award (mile) value for the same routes and dates. That is, we compared the cost of a given ticket in either cash or miles, across many tickets. This method differs from many others in that it looks at real-world redemptions rather than hypothetical, maximized redemptions. The advantage of this approach is that it provides an actual, real-world indication of how much these miles are worth on average.”

Someone holding a Delta Skymiles American Express card in front of a Delta Air Lines Boeing 747.

Source: Delta Air Lines

Based on this method, the publication has arrived at the valuation of miles of other airlines, too:

  • Alaska Airlines: 1.4 cents
  • JetBlue Airlines: 1.5 cents
  • Southwest Airlines: 1.5 cents
  • American Airlines: 1.7 cents

However, there are reasons to be a tad skeptical about this value that has been reached as high-value redemptions have not been factored in.

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The mathematics behind another method that arrives at the valuation of 1.16 cents

Time.com, on the other hand, takes taxes and fees charged on the ticket before arriving at a CPM of1.16 cents.

According to the publication, the factors it takes into consideration while evaluating the CPM are:

  • The cash price of the itinerary you want to book (Cash price).
  • The amount of taxes and fees charged on your award ticket (Award taxes).
  • The number of SkyMiles Delta charges for your award ticket (SkyMiles cost).
Delta ex LATAM A350 landing

The mathematical formula used is:

SkyMiles value = (Cash price – Award taxes)/(SkyMiles cost) x 100

As the price of a ticket can vary depending upon a variety of factors as airlines use a dynamic pricing model, time.com reports “redemption values as low as 0.8 cents per point and as high as 1.6 cents per point”. The publication further says:

“…the value you get for your miles will vary. In some cases, you may be able to get increased value for your SkyMiles, such as if you redeem them during SkyMiles award sales or for international travel.”

Factoring in the TakeOff 15 benefit leads to a more varied result

Last year, Delta partnered with its holders of American Express to offer all people with co-branded credit cards an automatic discount of 15% on most SkyMiles award bookings. The TakeOff 15 benefit is there for both the consumer and business versions of the following cards:

  • Delta SkyMiles Gold
  • Delta SkyMiles Platinum
  • Reserve credit cards
A Delta SkyMiles American Express Reserve Card.

Photo: American Express

After factoring the TakeOff 15 benefit into the formulae for calculating the CPM we’ve discussed above, we arrive at a CPM value of as much as 1.4 cents. So, there’s no way of calculating how much Delta SkyMiles are actually worth.

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How can you spend your Delta SkyMiles?

During sales, Delta Air Lines offers a one-way flight across the country for anywhere between 4,000 and 10,000 miles. This might be one way of spending your Delta SkyMiles, and so can be splurging the miles on partner airlines on international routes. You can opt to upgrade your seats on Delta Air Lines and also explore the plenty for options of spending your SkyMiles.

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