Biden Administration Investigates Frequent-Flyer Program Practices

The Biden administration is scrutinizing the four largest US airline frequent-flyer programs, investigating how they devalue points and frequently alter the points or miles needed for a flight. Transportation Secretary Pete Buttigieg has requested detailed reports from the CEOs of American, Delta, Southwest, and United on their loyalty program policies, fees, and features. The move comes amidst increasing consumers complaints about the rise in points needed for free flights and restricted seat availability for points redemption.

Buttigieg stated that loyalty programs offer significant value, "but unlike a traditional savings account, these rewards are controlled by a company that can unilaterally change their value. 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," he said in a Transportation Department statement.

Frequent-flyer programs have evolved from being based on the number of flights or miles flown to being driven by consumer spending on airline-branded credit cards. The revenue generated from these credit card transactions has become crucial for airlines. (This story was generated by Newser's AI chatbot. Source: the AP)