Airlines such as American, United, Delta, face DOT investigation over rewards programs

The investigation into the rewards programs may lead to regulatory changes that could affect the profitability of the airlines involved. If the DOT finds evidence of deceptive practices, airlines could face fines or be forced to alter their rewards structures, which might reduce customer loyalty in the short term. This could negatively impact stock prices.

Given that Delta is currently in the spotlight for its rewards program, the negative publicity from the investigation may impact its stock performance more than its competitors. Investors may react cautiously to any negative news about Delta's practices or penalties.

Although the investigation could pose challenges for airlines, if they comply and enhance transparency in their rewards programs, it may lead to improved customer perceptions and potentially stabilize or improve their customer base long-term; however, immediate reactions are likely to be negative.

Overall, with concerns raised about the rewards modernization and potential regulatory penalties, investors might want to approach investments in these airlines with caution for the coming months.