The US Department of Transportation is probing the rewards programs of major US airlines to understand their impact on consumers. The probe could lead to changes that disrupt the profit centers for airlines and credit-card issuers. Loyalty programs have come under fire for luring customers with rewards and then stripping perks. The Transportation Department has taken a hard line with airlines on practices harming consumers, and the probe is the latest in a series of government actions.
Key Points
US Department of Transportation probing rewards programs of major US airlines
Government seeks to understand impact on consumers, including devaluation of rewards and hidden fees
Probe could disrupt profit centers for airlines and credit-card issuers
Airlines under scrutiny for sudden changes to rewards programs
Pros
Government scrutiny may lead to changes that benefit consumers
Increased transparency in airline rewards programs
Cons
Disruption to profit centers for airlines and credit-card issuers
Potential loss of travel benefits valued by consumers