FORT WORTH - A class action alleging American Airlines improperly charged checked bag fees to passengers who were promised one or more free checked bags has settled for $7.5 million.
The lawsuit was filed in federal court and alleged breach of contract.
According to the lawsuit, baggage fees are big business for AA and the company took in more than $1.4 billion in baggage fees in 2019. Knowing that waiving baggage fees would entice fliers, AA offered free checked bags to certain customers, including customers who flew frequently in AA’s loyalty program AAdvantage, purchased first or business class tickets, and held AA’s branded credit cards.
“AA’s passenger contracts specify that certain of its passengers are permitted to check bag(s), for free,” the suit states. “Yet, AA systematically required these passengers to pay to check bags and thus breached its contract with affected passengers. AA failed to program its checked bag terms in the standardized software system that AA uses to determine whether passengers must pay for checked bags when they check in at the airport.
“As a result, AA passengers were improperly charged, and forced to pay baggage fees.”
Court records show a preliminary approval of class settlement was filed on Friday, stating the parties have reached an agreement to settle.
Pursuant to the terms of the settlement, American Airlines will pay a minimum of $7.5 million to provide full refunds to class members who file timely, valid claims.
Filed in the U.S. District Court for Northern Texas, Fort Worth Division. Case No. 4:21-cv-00184-O