(Bloomberg) — The rewards programs of the four largest US air carriers — Delta Air Lines Inc., American Airlines Group Inc., United Airlines Holdings Inc. and Southwest Airlines Co. — are being probed by the US Department of Transportation, the agency announced Thursday.
The department has asked the airlines to submit reports on their programs within 90 days to give the government a better understanding of how consumers “are impacted by the devaluation of earned rewards, hidden or dynamic pricing, extra fees, and reduced competition and choice,” it said in a statement.
The probe would be the first extensive government look at the programs that have expanded to produce billions of dollars for airlines annually, in some cases adding more revenue than flight operations. While the potential consequences are unclear, federal regulators could demand changes that might disrupt these profit centers for both carriers and credit-card issuers, and remove a travel option valued by many consumers.
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