DOT Investigates Major U.S. Airlines' Frequent Flyer Programs

The U.S. Transportation Department (DOT), led by Secretary Pete Buttigieg, is investigating the four largest U.S. airlines—American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines. The inquiry focuses on potential unfair, deceptive, or anticompetitive practices in their rewards and frequent flyer programs, aiming to protect consumers.

The U.S. Transportation Department (DOT) announced on Thursday its plan to investigate the frequent flyer programs of the four largest U.S. airlines. The inquiry aims to ensure that consumers are not subjected to unfair, deceptive, or anticompetitive practices.

Transportation Secretary Pete Buttigieg has reached out to American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines, demanding records and detailed reports on their rewards programs. The DOT is examining issues such as devaluation of rewards, hidden fees, and reduced competition.

A public hearing held in May, co-hosted by the DOT and the Consumer Financial Protection Bureau, also delved into airline loyalty programs. The ongoing scrutiny seeks to obtain specific data to identify potential consumer protection issues. Delta and Southwest have highlighted the benefits of their respective programs in response to the inquiry.

(With inputs from agencies.)