SUBSCRIBERS

The fury of the frequent flyer

US regulators are putting frequent-flyer programmes under a microscope. Tweaks to these programmes – in some ways more profitable than the airlines themselves – have upset travellers

    • As an indicator of how profitable frequent flyer programmes are, it is notable that Delta Airlines' Delta SkyMiles was worth nearly US$27 billion last year. The whole airline had a market cap of US$29 billion as at this summer.
    • As an indicator of how profitable frequent flyer programmes are, it is notable that Delta Airlines' Delta SkyMiles was worth nearly US$27 billion last year. The whole airline had a market cap of US$29 billion as at this summer. PHOTO: AFP
    Published Fri, Sep 27, 2024 · 05:00 PM

    HELL hath no fury like an airline frequent flyer scorned. When Delta Air Lines revamped its SkyMiles programme last year, prioritising dollars spent rather than miles flown when handing out upgrades, lounge access and other perks, users lit up social media with their ire. “Stinking odorous sack of scheisse,” was one particularly pungent comment.

    American Airlines took its turn on the naughty step this spring. Plummeting sales forced it to reverse plans to make corporate travellers who wanted to earn AAdvantage miles book through its website or “preferred” travel agents.

    Now US regulators are wading into the fray. The US Department of Transportation (DoT) recently announced a probe of the big four American airline programmes. That comes on top of a scathing report from the Consumer Financial Protection Bureau (CFPB), and complaints from US senators about “abusive, unfair and sometimes deceptive practices”.

    Copyright SPH Media. All rights reserved.