Criticism of Delta SkyMiles deemed racist: nickname “SkyPesos” under fire

Criticism of Delta SkyMiles deemed racist: nickname “SkyPesos” under fire

by Gary Lef June 9, 2024

A recent blog post calls out frequent flyers using the term “SkyPesos” for Delta SkyMiles as potentially racist. And as it acknowledges that the term – which took off in mileage circles – is something I originated, they suggest that I am racist.

The first online use of the term dates back to 2009. This makes for many, many Delta devaluations. Even then, it was important to understand that not all “miles” were created equal. Miles from United Airlines Mileage Plus, American Airlines AAdvantage and even Continental One Pass and Northwest Worldperks were far more valuable than miles from Delta.

• Miles are a private currency, without a central bank. The airline determines their value. That's a key point Delta and others made when they took on debt against their loyalty programs during the pandemic: They could choose to devalue that currency at will.
• Since the Deltas had been so devalued, calling them all “miles” made no sense. Instead, a currency that was worth less than what most of us (those I wrote to, at the time on my blog and on FlyerTalk) used regularly seemed more appropriate. Instead of miles or dollars, pesos were “worth less” or “more devalued.”

Is it racist to recognize that Delta miles, like the Mexican peso, are relatively devalued currencies? It's just… true. Delta even explained at an industry conference that they don't trying to offer greater redemption value through the SkyMiles program.

And, unlike Your mileage may vary post, this does not mean that the people in other countries have less moral value, but this means that other governments have managed their currencies less well.

I thought comparing the low value of SkyMiles to pesos was condescending, as well as a brief, perhaps even unconscious, leap into many Americans' belief that the United States is better than, say, Mexico.

The United States is, generally speaking, “better” than Mexico as a place to live and in terms of state capacity. To say otherwise ignores the direction in which traffic flows through the metaphorical wall that President Biden has continued to build.

The GDP per capita of the United States is six times that of Mexico. In purchasing power parity, American income is a little more than three times higher. As an American, with an American income, you will definitely enjoy visiting Mexico. However, Mexico also has some of the greatest inequality in the world. And for all the United States' faults, it is much more difficult to succeed there.

Here is a comparison of the GDP per capita of Our world in data:

However, they are seeking opinions from anonymous others on the racism of the term “SkyPesos”.

“it’s classism; it is to strike, it is to claim superiority.
“plays on the myth of American superiority.”
“reinforces the idea that Latin America is inferior because the peso has a lower value”

The term SkyPesos makes no claims of superiority – except that other frequent flyer programs offer more valuable earnings and redemptions than Delta. He can play on American Advantage superiority over Delta and the US Federal Reserve over the Bank of Mexico, but says nothing about the populations of either country in general. Would you rather have 100,000 US dollars or 100,000 Mexican pesos? Likewise, would you rather have 100,000 Alaska Airlines mileage plan miles or 100,000 Delta SkyMiles?

It is certain that the United States has made mistakes in the management of its currency. Inflation in the Covid era was entirely predictable and predicted (Cf. Larry Summers). Increasing the money supply (the Fed strengthening its balance sheet) and putting money into circulation via widespread deficit spending, even after the shutdowns and while the economy appeared to be doing well, had the obvious effect of devalue the currency. Fortunately, although we have capitalized on a higher price level, we have renounced the continued devaluation of the dollar.

Delta, on the other hand, has kept its foot on the gas of devaluation, but it appears that the economics of the program have plateaued. So while in the past it seemed like they could devalue with impunity, they may have finally hit a wall. They certainly understood the message that changes elite program announced last fall went too far, which is why they abandoned these measures.

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