Quantcast

Airline loyalty programs investigated as consumer complaints rise

Qantas launches mammoth Asia flight sale including Bali and Japan
New Update from Air Canada, WestJet, American Airlines, Delta, United, Southwest, Alaska, JetBlue Airways, and Sunwing: Airline Capacity Between Canada and US Slashed as Bookings Plummet Seventy Per Cent
Delta Cuts Two Domestic Routes
United Airlines Technicians Reject ‘Dead on Arrival’ Contract Proposal, Teamsters Say
The State of the Asia Pacific Airline Industry
Spirit Airlines to add Detroit nonstop flight out of Bradley International Airport
Major airline to launch new direct flights from Scotland to North America
Ryanair launches new ‘prime’ membership which saves passengers more than £400 a year
Judge Orders Boeing to Trial on 737 MAX Case
Qantas’ free international Wi-Fi to switch on from next week
The real reason Southwest is charging for bags now
Air France-KLM in ongoing talks with Air Europa on potential stake, CEO says
Frontier Savagely Shades Southwest After They Eliminated Longstanding Free Bag Policy, Sparking Backlash
Frontier Wants You to 'Divorce Your Old Airline' After Southwest Changes
Delta named one of Fast Company's Most Innovative Companies for sustainability initiatives
Passengers escape fiery American Airlines jet in Denver
Delta, American Dive On Slashed Outlooks; But Two Airlines Rally
Competitors are circling Southwest after the airline announced it's going to start charging for checked bags
Exclusive: Dominican Low-Cost Carrier Arajet Wants to Disrupt NYC Market
Boeing deliveries rise 63% in February from a year earlier
Transportation Secretary Duffy Lays Out 10 Ways the FAA Is Working to Upgrade Air Traffic Control and Make Flying Safer
EasyJet pilot Paul Elsworth suspended after flying too close to mountain
Delta Air Lines bets on ‘blended-wing’ flight to reduce emissions
Europe's airlines pivot to bite size M&A deals to limit cost, regulatory burden
Dave Emerson named new CEO of Virgin Australia, replacing Jayne Hrdlicka
Ryanair DELAYS controversial new boarding pass rule to avoid summer chaos
FAA Orders Inspection, Replacement of 737NG Engine Parts
Spirit Adds New Airport, Three Routes
Delta crash passengers should take the $30,000 payment, their lawyers say. Here’s why.
Budget airline launches new cheap flights to one of the UK’s top winter sun destinations
Airline loyalty programs investigated as consumer complaints rise
Policy
Webp received 4098816543700084
Pete Buttigieg Transportation Secretary | Wikipedia

In recent years, the value of airline loyalty programs has decreased significantly, as illustrated by a 36% increase in the average price of a loyalty seat among six major airlines since 2019, according to a study by IdeaWorksCompany.

Transportation Secretary Pete Buttigieg has taken action by sending requests to the four largest US airlines—American Airlines, Delta Air Lines, United Airlines, and Southwest Airlines—seeking detailed reports on their loyalty programs. Buttigieg expressed that, “These programs bring real value to consumers, with families often counting on airline rewards to fund a vacation or to pay for a trip to visit loved ones, but unlike a traditional savings account, these rewards are controlled by a company that can unilaterally change their value.”

Moreover, the Department of Transportation (DOT) has launched an investigation into how frequent flyer programs are being managed, particularly in connection with the devaluation of miles and the lack of transparency regarding pricing. Airlines are being asked to detail changes made to their loyalty programs since 2018 and explain how the value of a mile has evolved over the last six years. The DOT is particularly concerned about issues arising from mergers within the industry, which might lead to less competition and customer benefits being diminished.

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.

Airlines have traditionally rewarded loyal customers with perks such as priority boarding, access to lounges, and other upgrades. However, changes in loyalty programs have shifted benefits towards high spenders, making it harder for casual travelers to achieve rewards. This shift has caused dissatisfaction among customers like Sean Brown, who remarked on the changes by saying, “Unfortunately, there's been a pretty seismic shift in the industry. That has really not sat well with me.”

The use of dynamic pricing, where the cost of a seat can change rapidly, has further complicated the value proposition of loyalty programs. American Airlines switched to this model in 2023, allowing for unpredictable reward values. Buttigieg, addressing this issue, stated, “One of the biggest concerns is devaluation. So the points are worth something one day and something else. Another is some of the hidden pricing where the value of rewards is unpredictable or is concealed.”

Despite these trends, there are exceptions, such as American Airlines’ AAdvantage program. Reportedly, the cost of seats earned through rewards has decreased by 21% on average since 2019, offering better value compared to other airlines like Delta and United.

###

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

The development of supersonic private jet travel has long been anticipated, with many hurdles still to overcome.

Apr 6, 2025

During the summer, the United States is set to see up to 635 passenger flights daily to Europe, resulting in a considerable volume of transatlantic activity.

Apr 6, 2025

Delta Air Lines is set to operate its fleet of 16 Boeing 757-300 aircraft on over 25 routes during the northern hemisphere aviation summer, stretching from March 30 to October 25.

Apr 6, 2025

United Airlines has added Adelaide as its latest destination, joining its growing list of long-haul flights and marking the company's third-longest nonstop service.

Apr 6, 2025

Tom Cruise is known as an aviation enthusiast beyond his on-screen persona of Maverick from the "Top Gun" films.

Apr 6, 2025