US scrutinizing airline frequent flyer programs

The US Transportation Department is scrutinizing the frequent flyer programs of major US airlines for potential deceptive or unfair practices, the agency said Thursday as regulators step up oversight of the airline industry. The department has been meeting in recent weeks with passenger airlines to discuss the popular loyalty programs, including transparency practices when booking award tickets, transferability of miles and notice given before making changes, two sources told Reuters. One other key issue USDOT is looking at is the devaluation of frequent flyer miles over time that makes it harder to book award tickets, a separate source told Reuters. "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," a department spokesperson said. "DOT officials are actively meeting with U.S. airlines and gathering more information on this issue." Delta Air Lines and United Airlines declined to comment, while others did not immediately comment. Frequent flyer miles are one of the most popular loyalty programs. Delta, which said in 2020 it had more than 100m frequent flyer members, last year added a record 8.5m members. The meetings come as some in Congress have raised concerns about frequent flyer programs. In October, Senate Judiciary Committee chair Dick Durbin and Republican Senator Roger Marshal asked the Transportation Department and Consumer Financial Protection Bureau about "troubling reports" of unfair and deceptive practices in airlines’ frequent flyer and loyalty programs.<br/>