4 Big Airlines Face U.S. Inquiry Over Frequent Flier Programs

Economy|4 Big Airlines Face U.S. Inquiry Over Frequent Flier Programs

The Transportation Department announced connected Thursday that it was investigating the rewards programs of the country’s 4 biggest airlines, portion of the agency’s continuing efforts to bolster protections for aerial travelers.

As portion of the inquiry, Transportation Secretary Pete Buttigieg ordered the carriers — United Airlines, Delta Air Lines, American Airlines and Southwest Airlines — to furnish the bureau with records and elaborate accusation astir their loyalty programs.

The bureau said its probe was “focused connected the ways consumers participating successful hose rewards programs are impacted by the devaluation of earned rewards, hidden oregon dynamic pricing, other fees, and reduced contention and choice.”

Mr. Buttigieg said successful a connection that specified programs “are controlled by a institution that tin unilaterally alteration their value.”

“Our extremity is to guarantee consumers are getting the worth that was promised to them,” helium added, “which means validating that these programs are transparent and fair.”

Airlines’ policies person been successful the Biden administration’s transverse hairs for months arsenic it has tried to clamp down connected practices that it sees arsenic unfavorable to consumers. In April, the Transportation Department issued caller rules requiring airlines to connection refunds erstwhile flights are canceled oregon delayed and to uncover each fees earlier a summons is purchased.

Mr. Buttigieg expressed concerns astir loyalty programs successful May during a associated proceeding of the Transportation Department and the Consumer Financial Protection Bureau connected hose loyalty and recognition paper programs. He said the bureau was examining whether the companies were being straightforward with customers astir what they would person and whether they were “getting the woody that they were promised.”

The agency, helium added astatine the time, was besides looking into the interaction of the programs connected contention successful the industry, and whether immoderate were “being operated successful a mode that has the imaginable to artifact the introduction oregon maturation of smaller hose competitors, which could yet bounds options for consumers.”

In statements, Delta and Southwest defended their loyalty programs. American and United referred requests for remark to Airlines for America, a commercialized relation that represents the country’s biggest airlines, which said successful a connection that “U.S. carriers are transparent astir these programs, and policymakers should guarantee that consumers tin proceed to beryllium offered these important benefits.”