Sen. Durbin Proposes Significant Changes to Airline Points and Miles Programs

The bill would substantially change frequent flyer programs. Durbin is asking, among other things, to end the expiration dates on points and miles, and to let passengers pay for a flight in multiple ways, including a combination of points and cash.

“U.S. airlines have been working to Protect Our Points for years against those working to eliminate these loyalty programs,” Airlines for America said in a statement. “U.S. airlines are transparent about these programs, and policymakers should recognize their popularity and work to ensure that unnecessary regulation doesn’t eliminate them.”

Airlines for America is the trade group for the industry. According to the senator’s office, he would like to:

• Require airlines to issue any changes to the service terms of frequent flyer programs and co-branded credit cards at least one year in advance
• Require airlines to display the financial value of points and miles within 90 days of enactment
• Require airlines to display airfare and add-on pricing in both dollar and points and miles value
• Require airlines to extend the shelf life of points and miles so they do not expire
• Allow travelers to pay for airfare and add-on services with points and cash
• Allow travelers to transfer points (for free) to family members or others who are part of the same frequent flyer program
• Allow travelers to transfer an unlimited amount of points and miles to another traveler’s account while remaining of equal value

Oversight would be provided by the U.S. Department of Transportation and Consumer Financial Protection Bureau.

“These programs can shape how customers interact with airlines and many Americans reportedly have point balances substantial enough that they amount to part of their savings,” Department of Transportation Secretary Pete Buttigieg previously wrote in a letter to American Airlines, Delta Air Lines, Southwest Airlines and United Airlines.Bottom of Form.

Spokespeople for the DOT and the CFPB did not respond.