However, these programs have changed — and not for the better. Consumers are bearing the brunt of these changes.
So what’s shifting, and why are regulators paying attention? Here are some tips on how you can make the most of the existing programs and keep travel affordable, even if they don't provide the benefits they once did.
Airline loyalty programs are losing value
A recent report from IdeaWorksCompany highlights just how much airline loyalty programs have declined. According to the report, the average cost of award seats on six major airlines has risen 36% since 2019, making miles worth far less. Airline mergers have also contributed to lost or devalued miles.
Earning miles has become less advantageous, too. Many airlines now base rewards and seat upgrades on total spending rather than miles flown — including purchases made with co-branded credit cards. In some cases, airlines have restricted benefits like lounge access and expedited service lines to only their biggest spenders.
These changes have been so dramatic that they caught the attention of the U.S. Department of Transportation (DOT) under the previous Biden administration. Then-Secretary of Transportation Secretary Pete Buttigieg sent a letter to American Airlines, Delta, United and Southwest requesting detailed reports about their loyalty programs.
The DOT stated that it "launched an inquiry into the four largest U.S. airlines’ rewards programs that is aimed at protecting rewards customers from potential unfair, deceptive, or anticompetitive practices," adding that the "DOT’s probe is focused on the ways consumers participating in airline rewards programs are impacted by the devaluation of earned rewards, hidden or dynamic pricing, extra fees, and reduced competition and choice."
One concern raised by the DOT is that travelers who have spent years saving up miles for a dream trip may now find those miles have lost significant value.
However, it's worth noting that this inquiry began under the Biden administration. With the transition to the Trump administration, there’s skepticism about whether those protections will remain. Some worry that recent rules requiring transparency around fees and timely refunds for cancellations or major flight changes may be rolled back.
