The Biden administration is looking into airline frequent-flyer programs and whether they devalue points that consumers have earned. Transportation Secretary Pete Buttigieg wrote Thursday to the CEOs of American, Delta, Southwest and United.
Travelers use kiosks to check in for flights in the Delta Airlines ticketing area at the Los Angeles International Airport in Los Angeles, Friday, Aug. 30, 2024. and how they devalue points that consumers have earned and frequently change the number of points or miles needed to book flights.wrote to the CEOs of American, Delta, Southwest and United on Thursday, asking each for a report on policies, fees and other features of their loyalty program.
“But unlike a traditional savings account, these rewards are controlled by a company that can unilaterally change their value,” he said in a statement issued by the Transportation Department. “Our goal is to ensure consumers are getting the value that was promised to them, which means validating that these programs are transparent and fair.”
Frequent-flyer programs were once based on the number of flights taken or miles flown. In recent years, however, they have been fueled by spending that consumers conduct using
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