Department of Transportation launches inquiry into airlines’ rewards programs

The U.S. Department of Transportation said it has launched an inquiry into the four largest U.S. airlines’ rewards programs that is aimed at protecting rewards customers from potential unfair, deceptive, or anticompetitive practices. As part of the probe, U.S. Secretary of Transportation Pete Buttigieg sent letters to American Airlines (AAL), Delta Air Lines (DAL), Southwest Airlines (LUV), and United Airlines (UAL) ordering them to provide records and submit reports with detailed information about their rewards programs, practices, and policies. DOT’s probe is focused on the ways consumers participating in airline rewards programs are impacted by the devaluation of earned rewards, hidden or dynamic pricing, extra fees, and reduced competition and choice. As part of the Department’s review, Secretary Buttigieg is ordering the four largest airlines to submit information that will allow DOT to better understand and identify potential competition or consumer protection issues or risks. The Secretary has the authority to require airlines to provide special reports, information, documents, and answer questions as necessary. Secretary Buttigieg is specifically requesting information and documents relating to devaluation of earned rewards, hidden and dynamic pricing, extra fees, and reduction in competition and choice.