Quantcast

Department of Transportation investigates frequent flyer program practices

Here's how Southwest Airlines' new seating and boarding process will work
Delta Adds New Route to Asia
Southwest Airlines will begin selling assigned seats in 2025
Airlines begin canceling flights, offering rebooking ahead of Hurricane Helene
Southwest Airlines to cut service and staffing in Atlanta to slash costs
New heights, new features: Discover Alaska’s enhanced Flight Pass subscription service
Alaska Airlines completes acquisition of Hawaiian Airlines, expanding benefits and choice for travelers
American Airlines welcomes JetSMART to the award-winning AAdvantage program
Explore Japan for free? Japan Airlines offers free domestic flights to foreign travelers
Delta named Official Airline Partner of Birmingham City Football Club
American Airlines to Cut These Routes to Las Vegas, Orlando, and More — Here's Why
Alaska Airlines completes acquisition of Hawaiian Airlines, expanding benefits and choice for travelers
Southwest wouldn't really start charging for bags — right?
JD Power ranked this Midwest airport as the best among largest airports in North America
Alaska Airlines Chief Plans More Routes After a Deal With Hawaiian
Air Canada could begin suspending flights soon as strike deadline nears
JetBlue's new ticket policy entitles every passenger to a carry-on bag
Why United Airlines’ CEO makes as few decisions as possible
American invests in the future of aviation maintenance with new jobs, additional work
DOT probe seeks to determine if frequent flyer programs are fair to travelers
American Airlines flight diverted after passenger starts vaping
Russian Airline Wants $100 Million From Canada for Seizing Its Giant Cargo Plane
Here's where American Airlines is adding flights to Europe in summer 2025
Major airline grounds Airbus A350 fleet, citing faulty engine component
Airline CEO wants airports to cap passengers at 2 alcoholic drinks to limit on-board disruptions
Regulator cuts Malaysia Airlines' air operator certificate duration after probe
United Airlines flight attendants are prepared to strike. Here's why it's still unlikely.
2 workers killed, 1 injured in tire explosion at a Delta Air Lines shop in Atlanta
Emirates Will Buy 5 Airbus A380s From Lessor For $200 Million
Delta Air Lines named official airline of the WNBA
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

Delta Air Lines is adjusting its service between Atlanta and Anchorage, extending flights beyond the summer travel season to a year-round offering.

May 15, 2025

American Airlines is one of the largest carriers in the United States, operating an extensive mainline fleet of around 1,000 commercial jets.

Apr 10, 2025

The Gulfstream G700 and Bombardier Global 7500 are two leading models in the ultra-long-range business jet category.

Apr 10, 2025

A wholly owned subsidiary of American Airlines, PSA Airlines, plays a key role in connecting regional centers to major hubs.

Apr 10, 2025

Southwest Airlines, one of the leading airlines in the United States, has come a long way since its humble beginnings.

Apr 10, 2025

Delta Air Lines is set to expand its Caribbean offerings with new flights to Grenada and St Vincent from its Atlanta hub starting in December.

Apr 10, 2025