Quantcast

Department of Transportation investigates frequent flyer program practices

Alaska Airlines flight attendants reject new contract, union says there's 'more work to do'
Elliott Investment To Push For 10 New Boardroom Directors At Southwest Airlines
VistaJet Flight Brings Home Americans in Prisoner Swap
Air Canada Blames Paris Olympics On Decreased Profits
Delta passengers sue airline over refund refusals after CrowdStrike meltdown
Microsoft fires back at Delta after massive outage, says airline declined ‘repeated’ offers for help
Korean Air Confirms A Spacious Lounge Is Coming To The New Terminal One at New York JFK
VAS Aero Services to Acquire an Additional 17 Airbus A320 Airframes, Bringing to 23 the Total Number of A320s Slated for Teardown and Harvested Parts Redistribution
Delta CEO says CrowdStrike-Microsoft outage cost the airline $500 million
Boeing Reports $16.9 Billion In Revenue For 2nd Quarter With 5,400 Commercial Aircraft Backlog
United Airlines says flight attendant in Terrell Davis incident is no longer employed and NFL legend’s ‘no fly’ ban is lifted | CNN
Nepal Plane Crash Kills 18 After Takeoff - Airline Ratings
Southwest Airlines is getting rid of open seating | CNN Business
CrowdStrike Outage Caused 10% Spike in Air Charter
Aircraft Engine Maintenance and Repair to Peak in 2026, Worsening Capacity Shortage for Commercial Aviation, Says Bain & Company
Joby’s Electric Air Taxi Makes European Debut
The National Right to Work Legal Defense Foundation announces NLRB-scheduled vote to remove union officials
Families recount the horror of MH17 ten years on - Airline Ratings
777-9 Enters Certification Flight Testing - AVweb
Kompass Kapital Sets New Course with Airshare Investment
SATS, SIA Engineering Company and Changi Airport Group to Trial Autonomous Buses at Changi Airport
Qatar Airways Landing An A350 In Hamburg Makes A Powerful Statement - Airline Ratings
EBAA Backs Dassault's Sustainability Lawsuit against European Commission | AIN
American Airlines Now Lets You Earn And Spend Miles On Concerts And Events
Boeing agrees to plead guilty to defrauding the FAA but escapes punishment sought by victims’ families | CNN Business
IATA partners with Aviation Sustainability Forum to tackle cabin waste
Qatar Airways In Talks To Buy 20% Of Virgin Australia - Airline Ratings
Boeing Will Buy Spirit AeroSystems For $4.7 Billion In Stock & Airbus Enters $559 Million Agreement For Its Parts
Bombardier Global Jet Production Stops in Toronto as Union Workers Strike | AIN
Justice Department To Offer Boeing a Plea Deal Related to Max Crashes
Department of Transportation investigates frequent flyer program practices
Research
Webp p18pueyozwbyaegyt1fzg7i1qaau
View from the Wing | View from the Wing

The Department of Transportation has sent letters to United Airlines, American Airlines, Delta Air Lines, and Southwest Airlines demanding detailed information about their frequent flyer programs. The inquiry focuses on changes in award pricing, advance notice of program changes to members, and the value of points over the past six years. Each airline must respond by December 4.

Transportation Secretary Pete Buttigieg emphasized consumer protection as the primary goal: "Points systems like frequent flyer miles and credit card rewards have become such a meaningful part of our economy that many Americans view their rewards points balances as part of their savings." He added that these programs offer real value to consumers but are controlled by companies that can unilaterally change their value. "Our goal is to ensure consumers are getting the value that was promised to them," he stated.

United has devalued its miles since eliminating award charts in 2019. Delta charges more than four times as many miles for certain seats compared to its partners. Southwest has reduced its points' value by 43% over twelve years.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

The Department of Transportation is responsible for regulating 'unfair and deceptive' practices by airlines, including frequent flyer programs. However, according to the DOT Inspector General, the agency has ignored complaints about these programs for years.

The DOT's demands from the airlines include details on how they price awards and all changes made to their programs since July 31, 2018. They must also provide information on whether advance notice was given for each change and how it affected membership numbers at each status level. Additionally, airlines must calculate the value of one point over the past six years and disclose how much they sell miles to banks for.

Airlines are required to submit copies of co-brand contracts, analysis of those deals' values, details on loyalty program mergers and changes due to airline mergers, partnership agreements with other airlines, and responses to competitive changes at other carriers.

DOT is also concerned with extra fees associated with using points. While American Airlines and Delta have added surcharges to certain awards, fees are more common among foreign carriers and low-cost carriers.

A sample letter from DOT indicates that this order applies not only to main loyalty programs but also any consumer incentive programs affiliated with the airline.

It remains unclear what information will be publicly available after this investigation. The DOT order specifies that airlines should not seek information from separately incorporated subsidiaries or affiliates but only provide data in their direct possession.

This investigation follows pressure from Senators Durbin and Marshall who pushed for scrutiny into frequent flyer programs after airlines opposed their credit card interchange legislation. It may also be timed as part of a 'middle class pocketbook' agenda for upcoming elections.

Future actions could include revisiting Supreme Court rulings or further regulatory measures by DOT if deemed necessary.

Organizations Included in this History
More News

Long Beach Airport has announced a new daily nonstop service to Baltimore Washington International (BWI) through Southwest Airlines.

Jun 7, 2025

Lidl workers in Belgium initiated a strike and blockades on June 5, following similar actions in France and Italy.

Jun 6, 2025

Delta Air Lines is expanding its flight offerings for the 2025 pro football season, introducing new routes and increasing capacity to accommodate fans traveling to major games.

Jun 6, 2025

National Business Aviation Association (NBAA) President and CEO Ed Bolen addressed the U.S. House Aviation Subcommittee, emphasizing the urgent need to reform the nation's air traffic control (ATC) infrastructure.

Jun 6, 2025

Last month, over 130 volunteers from Delta Air Lines and several partner organizations collaborated to construct a new playground in College Park, Georgia.

Jun 6, 2025

Walking together on Omaha Beach, 19-year-old college student Caleb Walker and 101-year-old WWII veteran Jack Myers reflected on the sacrifices made during the D-Day invasion.

Jun 6, 2025