American Airlines settles baggage lawsuit with $7.5M payment to passengers

American Airlines is paying passengers who said they were charged incorrect fees for their baggage. The airline has been sued for this and agreed to settle the class-action lawsuit by paying at least $7.5 million.

American Airlines was forced to face litigation for two years for this lawsuit after many passengers accused it of charging baggage fees against the airline’s policies. The case involves the collected fees in the period between 2013 and 2021.

As per Business Insider, five passengers complained that American Airlines did not honor its promise of allowing free checked baggage for some credit card holders, first-class passengers, and frequent flyers. The claimants said that by not honoring its pledge, the air carrier just breached its contract with passengers.

When they first filed the suit in February 2021, they said American Airlines "improperly charged" and forced them to pay baggage fees. Now the case has been settled, it was reported that the motion with the details was filed late last week in a Texas federal court.

The airline said it would distribute full refunds to valid claims and those who have filed the case. Based on the court documents available to the public, there is no limit on the amount the company will pay above $7.5 million.

"Rather than risk trial and appeal, which could lead to class members getting zero or less than-full compensation at an uncertain time later, the settlement gives every settlement class member a guaranteed opportunity now to get 100% compensation," part of the motion reads.

Moreover, aside from the refunds, American Airlines will also all the attorney’s fees and any administrative costs. At this time, the settlement is in a preliminary approval phase now.

This is the stage where the court will assess and determine if the settlement is fair and reasonable. The court will also check if the settlement terms are adequate then it will schedule a date for the final hearing.

Simple Flying reported that American Airlines was not able to give an immediate response when it was contacted for comments on the matter. Other media outlets said the air carrier’s spokesperson declined to give a statement.