The Biden administration has launched an investigation into the frequent-flyer programs of four major U.S. airlines—American, Delta, Southwest, and United—amid concerns that these programs may be unfairly devaluing consumer rewards. Transportation Secretary Pete Buttigieg has requested information from the airlines regarding their policies, fees, and practices that affect the value of earned points and miles.

Consumers have increasingly voiced frustrations over frequent-flyer programs, claiming that airlines arbitrarily raise the number of points needed for rewards and restrict the availability of seats that can be booked using points. Buttigieg noted that while these loyalty programs offer travelers valuable benefits, their structure allows airlines to unilaterally change the terms, often to the detriment of consumers. “Unlike traditional savings accounts, these rewards can be altered by the companies, leaving travelers without the promised value,” Buttigieg said.

Delta Airlines responded to the inquiry, emphasizing its commitment to providing a meaningful rewards experience for its members, while Southwest praised its flexible travel policies within its Rapid Rewards program. Airlines for America, a trade group representing the four carriers, maintained that the loyalty programs are transparent and beneficial to millions of travelers.

Frequent-flyer programs, once tied to the number of miles flown, now often rely on consumer spending through airline-branded credit cards, making them a significant revenue stream for airlines. However, consumer complaints have spiked, with the Consumer Financial Protection Bureau reporting a 70% increase in grievances related to credit card rewards since before the pandemic. This rise in complaints has prompted the Department of Transportation and other government agencies to review whether these programs are transparent and fair for consumers.