Federal Probe Targets U.S. Airlines' Frequent-Flyer Program Policies

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By Stephan Mann
Published September 06, 2024 1:30 AM EST

The Biden administration is investigating the frequent-flyer programs of the four largest U.S. airlines: American, Delta, Southwest, and United. Concerns are rising about how airlines devalue points and alter the number of miles needed for free flights. Passengers often report frustration with changes in point requirements and limited seat availability for award flights.

Transportation Secretary Pete Buttigieg has requested information from the airlines, aiming for more transparency and fairness in these loyalty programs. "Our goal is to ensure consumers are getting the value that was promised to them," he stated. The inquiry follows complaints that loyalty programs no longer provide the consistent benefits they once did.

Delta emphasized its commitment to providing a "meaningful rewards experience," while Southwest highlighted the flexibility and availability of its Rapid Rewards program. Airlines for America, a trade group representing the airlines, defended the programs, noting that they offer valuable benefits to millions of consumers.

In May, the Transportation Department and Consumer Financial Protection Bureau held a hearing to discuss frequent-flyer programs, raising many issues highlighted in Buttigieg's letter. Consumer advocates, like Erin Witte from the Consumer Federation of America, criticized airlines for devaluing loyalty programs. "any of them have morphed into programs that are anything but loyal to their customers," Witte said.

The consumer-protection board reported a 70% rise in complaints about credit card rewards since pre-pandemic levels. Buttigieg has given the airlines 90 days to report on how they determine point values, fees, and partnerships with banks. The order also requires airlines to disclose any changes made since 2018, including their impact on the dollar value of reward points.

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About the author

Stephan Mann

A dedicated travel content author at FlyOfinder since 2017. Stephan Mann brings a wealth of knowledge and experience to his writing. His engaging storytelling not only captivates but also guides and informs. Stephan's writing helps readers confidently plan their travels, ensuring every journey is filled with excitement and memorable experiences.