As part of the probe, U.S. Secretary of Transportation Pete Buttigieg sent letters to American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines 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.
Loyalty programs are an important revenue driver for airlines. For one, those customers tend to book more frequently because they want access to the perks that come with accumulating lots of points with a particular carrier.
Airlines for America, an industry trade group, defended its members' credit card practices, telling CBS News that U.S. carriers are transparent about these programs, and policymakers should ensure that consumers can continue to be offered these important benefits.
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