The US Department of Transportation (DOT) has launched an investigation into the frequent-flyer programs of the nation’s four largest airlines—American Airlines, Delta, Southwest, and United—following consumer complaints about devalued rewards and changes in point requirements for free flights.
Transportation Secretary Pete Buttigieg sent a letter to the CEOs of the airlines on Thursday, asking for detailed information on their policies, fees, and the features of their loyalty programs. The probe aims to determine if the programs are transparent and fair to consumers, many of whom rely on these rewards for vacations or family trips.
“Loyalty programs bring real value to consumers… But unlike a traditional savings account, these rewards are controlled by a company that can unilaterally change their value. Our goal is to ensure consumers are getting the value that was promised to them,” Buttigieg said.
Frequent complaints from travelers include airlines raising the number of points needed to book flights and limiting the availability of seats that can be purchased with rewards. The DOT will investigate four key areas: the devaluation of points, hidden or dynamic pricing, additional fees, and how frequent-flyer programs are affected by airline mergers.
Delta, Southwest, and the industry trade group Airlines for America have responded, emphasizing the value of loyalty programs and the transparency of their practices. Southwest, in particular, highlighted that its points never expire and that it offers more seats for reward travel than its competitors.
The DOT has given the airlines 90 days to submit reports detailing their policies, how they determine point values, and any changes to their programs since mid-2018. No penalties have been announced yet, but the investigation could lead to further actions if violations of consumer rights are found.
With input from CBS News, USA Today, and Market Watch.
