Washington, D.C. — In response to a new mandatory order from the U.S. Department of Transportation (DOT) requiring the nation’s Big Four air carriers—American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines—to provide detailed information on their frequent flyer programs, the American Economic Liberties Project released the following statement.

“We’re thrilled to see the DOT kickstart oversight into programs that have devolved into nothing less than a rigged game against consumers,” said William J. McGee, Senior Fellow for Aviation and Travel at the American Economic Liberties Project. “It’s no secret to air travelers that modern frequent flyer programs are rife with consumer protection, competition, and transparency issues. In recent years, the goalposts for point redemption keep shifting while industry mergers and soaring passenger loads have made it ever more impossible to redeem upgrades or trips. Worse, the transparency of the ground rules has evaporated behind an opaque screen, so the value of miles and points is harder than ever to discern. We’re grateful for both the DOT and Consumer Financial Protection Bureau’s work to make this issue a priority, and look forward to the forthcoming findings.”

Economic Liberties has long been vocal about the need to examine the growing problems with airline and travel loyalty programs. In May, Director of Policy and Advocacy Morgan Harper provided testimony at a joint hearing on these issues sponsored by the DOT and CFPB, which cast a spotlight on many of these issues addressed in today’s order.

The DOT order gives these carriers 90 days to respond to a comprehensive set of questions on devaluation of earned miles; hidden and dynamic pricing within the programs; junk fees associated with miles and points; and the resulting reduction in competition, particularly among smaller and low cost carriers. It’s imperative the Big Four—which together control an unprecedented 80% of the domestic market—fully comply with this order, so that fairness can at last be addressed in loyalty programs.

Learn more about Economic Liberties here.

Learn more about Economic Liberties here.

###

The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.