U.S. Department of Transportation to investigate frequent flyer programs of four major U.S. airlines
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Civil Aviation Resources Network, September 6, 2024: According to Reuters, the U.S. Department of Transportation (DOT) said on Thursday that it will investigate the rewards and frequent flyer programs of the four major U.S. airlines to ensure that consumers are not facing unfair, deceptive or anti-competitive practices.
U.S. Transportation Secretary Pete Buttigieg sent letters to American Airlines, Delta Air Lines, Southwest Airlines and United Airlines, asking these airlines to provide records and submit reports to answer detailed questions about their rewards programs.
The department is reviewing how consumers are affected by "reward devaluation, hidden or dynamic pricing, additional fees, and reduced competition and choice."
Buttigieg said the department is seeking "more specific data to better understand the largest rewards programs and identify potential competition or consumer protection issues or risks."
The American Airlines Association said that U.S. airlines are very transparent about their frequent flyer programs, and "policymakers should ensure that consumers can continue to have access to these important benefits."