American Airlines will refund $7.5 million to travelers for baggage fees

White House crackdown on hidden airline fees

Biden administration plans to crack down on hidden airline fees


American Airlines has agreed to pay $7.5 million to settle a class-action lawsuit from passengers who alleged they had been wrongfully charged baggage fees.

Five passengers filed a federal lawsuit towards American in February 2021, in Fort Worth, Texas, the place the airline relies. The clients claimed they had been compelled to pay bag fees at an airport counter although the tickets they bought on-line from the airline included free checked baggage. One passenger paid the price on the airport, then later requested a refund from American Airlines and was instructed no, in accordance to the lawsuit. 

An American Airlines consultant declined to touch upon the settlement. Court paperwork filed by the service final year present the company denied the allegations, arguing that the passengers didn’t deserve refunds.

The settlement avoids a trial within the case, which was set to start in August. 

The $7.5 million will be used to refund clients who paid checked baggage fees between 2013 and 2021, in accordance to a courtroom order. To acquire a refund, passengers should submit e mail proof they had been charged baggage fees on an American Airlines ticket that included free checked baggage, the order states. Travelers who booked a flight utilizing an American Airlines-branded Citibank or Barclays bank card are additionally eligible these playing cards supply free baggage verify.

The airline additionally might have to pay administrative and legal professional fees for the class-action members, which might be separate from the $7.5 million, courtroom paperwork present. 

American charges $25 every method for one bag checked on economic system class flights throughout the U.S., Canada, Puerto Rico or the Virgin Islands and $35 every method for a second checked bag.

Biden administration plans crackdown on hidden airline fees


The settlement comes practically a month after President Biden proposed new guidelines designed to crack down on hidden airline fees. The proposal would power airways and third-party reserving websites to disclose any potential add-on prices, like cancellation fees or baggage fees together with the ticket worth. Providing a breakdown of every price would assist clients make extra knowledgeable choices after they buy airline tickets, the Biden administration stated. 

Extra fees are large business for corporations like American, Delta and Southwest. U.S. airways generated $1.8 billion in baggage fees within the second quarter this year, federal transportation data reveals. The high 20 airways globally generated a complete of practically $21 billion in baggage price income final year, down from about $33 billion in 2019, in accordance to an estimate from IdeaWorks. 

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