Frequent flyer miles, flight rewards programs benefits under inquiry by USDOT

WASHINGTON — Frequent flyer miles and credit card rewards can be a big bonus for travelers when booking flights.

Now, the U.S. Department of Transportation is working to find out if they actually save Americans money.

Channel 2 Washington Correspondent Nicole D’Antonio has details on a new inquiry by USDOT into flight reward programs, and what that could mean for you and your family next time you take a trip.

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USDOT is looking at four of the largest United States airlines to see how they handle frequent flyer programs.

Transportation Secretary Pete Buttigieg sent letters to the chief executive officers of Delta Air Lines, Southwest Airlines, United Airlines and American Airlines.

“People put a lot of value into their rewards. People make conscious decisions over time to spend on a particular credit card,” Erin White, Consumer Federation of America, told Channel 2 Action News.

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The airlines are supposed to provide extensive reports regarding their rewards programs, practices and policies to USDOT by Dec. 4.

USDOT will then use that data to determine how the devaluation of earned rewards, hidden pricing, extra fees and reduced competition impacts loyalty program members.

“When you’re changing the rules halfway through the game, that’s unfair and it’s deceptive,” White said.

At this point, it’s not yet clear if any potential penalties or enforcement actions could result from the probe.

In a statement, Buttigieg said Americans rely on their reward points and the goal is to ensure customers are getting the value promised to them.

The group Airlines for America, which represents the four major carriers, said the airlines are “transparent” about rewards programs.

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