American Airlines has agreed to pay a minimum of $7.5m after the company was accused of overcharging baggage fees for passengers in a class-action lawsuit.
Five passengers who brought on the lawsuit claimed that the airline had failed to honour a pledge to allow checked baggage at no extra cost to some credit card holders, frequent and first-class flyers, Insider reported.
Plaintiffs alleged they had been “improperly charged” for baggage between 2013 and 2021, in the suit brought in Texas last year.
Per Insider, a motion to settle the case was filed in the Texas federal court last week.
American Airlines said in the motion it will refund any members of the lawsuit who file valid claims in a timely manner, and there is no cap how much it could payout.
The airline said it wanted to avoid the risk of trial and appeal, and gave “every settlement class member a guaranteed opportunity now to get 100 per cent compensation”. They have also agreed to pay legal and administrative fees, Insider reported.
An American Airlines spokesperson declined The Independent’s request for comment.
According to its baggage fee terms, American Airlines offers a first checked bag free for flights to most international destinations for loyalty programme members, and to those who hold certain credit cards. Any passengers flying business class or premium economy receive two checked complimentary bags.
