Major airlines secretly sold passenger data to federal agencies, documents reveal

06/18/2025 / By Ramon Tomey

Airlines Reporting Corporation (ARC), owned by major airlines (Delta, American, United, etc.), sold bulk passenger data – including names, itineraries, and financial details – to U.S. federal agencies like Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE).
The arrangement, active since June 2024 and potentially lasting until 2029, required CBP to conceal ARC as the data source unless ordered by a court – bypassing transparency and legal safeguards.
Critics warn this enables warrantless mass surveillance, with agencies exploiting data brokers to avoid judicial oversight. Oregon Sen. Ron Wyden condemned airlines for profiting from Americans’ sensitive information.
The practice mirrors post-9/11 airline data sharing but lacks congressional approval. Experts call it a “digital-age military-industrial complex” and urge closing the “data broker loophole.”
While CBP claims compliance with privacy policies, ARC and airlines refuse to disclose details, leaving passengers unaware of who accesses their data or how it’s used – raising fears of unchecked surveillance expansion.

In a startling revelation, a data broker owned by several airline companies reportedly sold passenger data to U.S. federal agencies.

404 Media first revealed this development, citing internal documents it obtained through a Freedom of Information Act (FOIA) request. According to the documents, the shadowy data broker Airlines Reporting Corporation (ARC) allegedly funneled passenger data to at least one government agency. ARC is owned by at least eight major carriers including Delta, American Airlines and United Airlinesm

The data broker sold travel data to Customs and Border Protection (CBP), which is under the Department of Homeland Security. CBP claimed in a Statement of Work obtained by 404 Media as part of the FOIA request that it needs the data for tracking so-called “persons of interest.” ARC provided CBP with the information it needed in bulk – including names, flight itineraries and financial details – and instructed the agency to conceal the source.

The arrangement with CBP – which began in June 2024 and could extend until 2029 – raises urgent concerns about privacy, government overreach, and corporate complicity in mass surveillance. Immigration and Customs Enforcement (ICE) also purchased the data, fueling fears of unchecked surveillance amid the agency’s raids that sparked clashes in Los Angeles.

Civil liberties experts warn the practice bypasses legal safeguards, allowing warrantless access to sensitive travel histories. “The big airlines – through a shady data broker that they own – are selling the government bulk access to Americans’ sensitive information,” Sen. Ron Wyden (D-OR) told 404 Media.

Data brokers like ARC profit off travel privacy

ARC, which processes ticket settlements for over 240 airlines, operates under a veil of secrecy. Contract clauses explicitly direct CBP to avoid disclosing ARC as the data source unless compelled by court order.

The sold records span 39 months, updated daily with passenger bookings from travel agencies like Expedia – though not direct airline purchases. While CBP insists the data supports “administrative and criminal cases,” critics argue it exemplifies a broader trend of agencies exploiting data brokers to evade judicial oversight.

Jake Laperruque of the Center for Democracy & Technology likened the practice to a “digital-age military-industrial complex.” He warned that agencies are reviving a discredited “collect it all” mentality. (Related: Canada intensifies airport surveillance with digital identity and facial recognition systems.)

The controversy echoes post-9/11 surveillance debates, when airlines shared passenger data with the government under the guise of national security. Yet unlike those early programs, today’s purchases lack transparency or congressional authorization.

ARC’s role extends beyond data sales; it also partners with firms like Expedia to analyze travel trends and combat fraud. Despite these functions, its collaboration with law enforcement without passenger consent has drawn sharp rebukes. Wyden has pressed major airlines for answers, while Laperruque urged Congress to close the “data broker loophole” that enables such bulk collection.

CBP defended its actions in a statement, reiterating that it adheres to “robust privacy policies.” However, it provided no justification for ARC’s nondisclosure demands.

The revelations underscore a growing rift between corporate data practices and civil liberties. As Wyden noted, airlines have “refused to answer oversight questions,” leaving passengers in the dark about who profits from their travel histories — and who might be watching. With ICE and CBP already leveraging the data, the fallout could redefine privacy norms in an era where every flight detail is a commodity.

Watch this clip from “Fox & Friends Weekend” about new airport rules tracking Americans without consent.

This video is from the NewsClips channel on Brighteon.com.