The Biden administration is investigating the frequent-flyer programs of the four largest U.S. airlines to assess if they devalue points and frequently change the number of points or miles needed to book flights.
Transportation Secretary Pete Buttigieg has requested reports from the CEOs of American, Delta, Southwest, and United on policies, fees, and other features of their loyalty programs.
Driving the news: Consumers have complained about airlines increasing the number of points needed for a free flight and limiting the availability of seats for point redemption.
- The Transportation Department aims to ensure that consumers receive the promised value from these programs and seeks transparency and fairness.
What they’re saying: “But unlike a traditional savings account, these rewards are controlled by a company that can unilaterally change their value,” Buttigieg said in a statement. “Our goal is to ensure consumers are getting the value that was promised to them, which means validating that these programs are transparent and fair.”
What we’re watching: Airlines have 90 days to report back to the government on their frequent-flyer programs, accordion got Buttigieg’s order.
- They have to report how point values are determined, any fees that consumers must pay and information on banks that buy miles from airlines and use them in credit card promotions.
