Airlines
American Airlines to pay $7.5M in class action settlement over bag fees
American Airlines to pay at least $7.5 million to settle a lawsuit alleging that it overcharged passengers for checked bags.
An agreement was reached last week that requires American Airlines to pay at least $7.5 million to settle a lawsuit alleging that it overcharged passengers for checked bags.
In accordance with the settlement agreement, American would deposit a minimum of $7.5 million into a settlement account, according to a court document made on October 14 by the plaintiffs’ lawyers. All passengers who were mistakenly charged a baggage fee within the predetermined dates would be entitled to a refund. According to the petition, Americans would be compelled to pay the whole sum if claims exceeded $7.5 million, “completely refunding at-issue luggage fees for all legitimate claimants.”
Before the case went to trial, attorneys reached a preliminary agreement. Last week, the settlement was brought to Judge Reed O’Connor, who has approved the agreement before it can be finalized. Holders of co-branded American credit cards and members of the AAdvantage loyalty program with elite status filed the lawsuit, claiming they were charged baggage fees despite being excluded from them according to the carrier’s rules.
On domestic and short-haul international flights, American normally charges $30 for the first checked bag and $40 for the second checked bag. In 2018, those charges were raised from $25 to $35. A minimum of one complimentary checked bag is, however, available to AAdvantage members with an elite level. Furthermore, cardholders of several co-branded American credit cards receive complimentary checked luggage.
The settlement fund’s administrators are still determining how to compensate passengers, but individuals who may be impacted should be informed.
