The U.S. Transportation Department has launched an investigation into the frequent flyer programs of four major airlines—United, Delta, American, and Southwest—as part of its ongoing effort to safeguard air travelers.
This inquiry, spearheaded by Transportation Secretary Pete Buttigieg, seeks detailed information about how these loyalty programs operate, particularly focusing on the devaluation of rewards, hidden fees, dynamic pricing, and reduced competition.
Buttigieg emphasized that airlines have full control over the value of their loyalty programs, which allows them to alter terms at will.
“Our goal is to ensure consumers are getting the value that was promised to them,” he said, underscoring the need for these programs to be transparent and fair.
The investigation reflects the Biden administration’s broader crackdown on airline practices that it views as detrimental to consumers.
Earlier this year, the Transportation Department introduced rules requiring airlines to offer refunds for canceled or delayed flights and to disclose all fees upfront before ticket purchases.
Now, the focus has shifted to whether frequent flyer programs, often marketed as key benefits in airline business models, are delivering the promised value or restricting competition.
Airlines have responded to the scrutiny, with Delta and Southwest defending their loyalty schemes, while American and United deferred to Airlines for America, which maintains that carriers are transparent in offering these benefits.
The inquiry follows consumer backlash, notably against Delta last year, when changes to its SkyMiles program stirred widespread discontent, prompting the airline to revise its modifications.
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