The Transportation Department ordered American, Delta, Southwest and United to share more information about their rewards practices to ensure they are fair to consumers and rivals.According to The New York Times, the Transportation Department has ordered the four largest airlines in the country – American, Delta, Southwest, and United – to provide more information about their rewards programs. This move is part of the agency’s ongoing efforts to protect air travelers.

Transportation Secretary Pete Buttigieg has requested records and detailed information from the airlines regarding their loyalty programs. The agency’s investigation is focused on how consumers are affected by changes in the value of their rewards, hidden or dynamic pricing, additional fees, and limited competition and options.

In a statement, Mr. Buttigieg expressed concerns about the control that airlines have over their loyalty programs and the potential for them to unilaterally change the value of rewards. He emphasized the importance of ensuring transparency and fairness for consumers.

The Biden administration has been targeting airline policies that are deemed unfavorable to consumers. In April, the Transportation Department issued new rules requiring airlines to offer refunds for canceled or delayed flights and disclose all fees before a ticket is purchased.

Mr. Buttigieg previously raised concerns about loyalty programs during a joint hearing with the Consumer Financial Protection Bureau in May. He questioned whether airlines were being upfront with customers about the benefits they would receive and whether the programs were impacting competition in the industry.

Delta and Southwest have defended their loyalty programs, while American and United have referred requests for comment to Airlines for America, a trade association representing major airlines. The association stated that U.S. carriers are transparent about their programs and policymakers should ensure that consumers can continue to receive these benefits.

Last year, Delta faced backlash from travelers when it announced changes to its SkyMiles frequent flier program. The airline later made adjustments in response to the outcry. 

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