The U.S. Department of Transportation has initiated an investigation into the consumer protection aspects of the mileage programs of four major airlines.
The airlines under investigation are American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines. The focus is on how consumers are affected by a reduction in the value of benefits, hidden fees, dynamic pricing, additional charges, and a decrease in competition and choices.
Issues such as increasing the number of points required for award tickets and upgrades, adding blackout dates, changing validity periods, imposing new restrictions that lower the value of benefits, difficulties in comparing the value of benefits to cash prices when the actual value is unknown or unpredictable, additional charges at the time of redeeming benefits, and the impact of reduced competition and choices are being addressed in writing.
Transportation Secretary Pete Buttigieg has stated, considering people who view their points balance as part of their savings, “Unlike traditional savings accounts, these benefits are managed by companies and can be unilaterally changed in terms of value.”
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