The department has engaged in discussions with passenger airlines in recent weeks to address various aspects of loyalty programs, including transparency during the booking of award tickets, the transferability of miles, and the advance notice provided before implementing changes.
(Image Source)
GLOAccording to an article published by Reuters, the U.S. Department of Transportation (USDOT) is examining the frequent flyer programs of major U.S. airlines for potential deceptive or unfair practices, signaling increased regulatory scrutiny within the airline industry. The department has engaged in discussions with passenger airlines in recent weeks to address various aspects of loyalty programs, including transparency during the booking of award tickets, the transferability of miles, and the advance notice provided before implementing changes, according to two sources cited by Reuters.
One significant issue being investigated by USDOT involves the devaluation of frequent flyer miles over time, making it more challenging for travelers to redeem these miles for award tickets, as disclosed by a separate source to Reuters.
A spokesperson for the department stated, “We plan to carefully review complaints regarding loyalty programs and exercise our authority to investigate airlines for unfair and deceptive practices that hurt travelers as warranted. DOT officials are actively meeting with U.S. airlines and gathering more information on this issue.”
Delta Air Lines and United Airlines opted not to provide comments, and other airlines did not immediately respond. Frequent flyer miles remain one of the most popular loyalty programs, with Delta reporting over 100 million frequent flyer members in 2020 and adding a record 8.5 million members last year.
These discussions coincide with concerns raised by some members of Congress about frequent flyer programs. In October, Senate Judiciary Committee Chair Dick Durbin and Republican Senator Roger Marshal reached out to the Transportation Department and Consumer Financial Protection Bureau, expressing concerns about “troubling reports” related to unfair and deceptive practices within airlines’ frequent flyer and loyalty programs.
Click here to read original aticle.
