Officials from the Department of Transportation have begun meeting with airlines as part of an inquiry into the carriers’ loyalty programs. The investigation was first reported by Reuters, which was told by anonymous sources that the DOT is looking into transparency practices for award bookings, devaluation of frequent flyer miles, transferability of miles and whether airlines provide adequate notice before making changes.

Loyalty programs and their affiliated credit cards provide airlines with higher profit margins than flight operations and have grown dramatically since the pandemic. American Airlines, for example, says membership in its AAdvantage loyalty program is up 50% since 2019.

The Biden administration has focused on aviation consumer protection. Most recently, the department levied a $140 million fine on Southwest for the carrier’s operational collapse during the 2022 holidays. The DOT has also proposed new consumer-protection regulations, including mandatory refunds for lengthy flight delays and new upfront disclosure requirements for ancillary fees.

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