American Airlines Agrees to Pay $45M in Fare Collusion Settlement

American Airlines has agreed to pay $45 million to settle a lawsuit that says all four major U.S. airlines colluded to drive up the price of airfares. The American Airlines settlement comes three years after the lawsuit was filed.

American Airlines settlement

American Airlines Settlement

The litigation began in 2015 after the U.S. Department of Justice began probing possible collusion. It has yet to take any formal action. It was filed in New York and Illinois back in and accused Delta, American, United and Southwest airlines of engaging in a “conspiracy to fix, raise, maintain, or stabilize prices of airline tickets through a number of mechanisms.” The passenger litigation combined more than 100 private lawsuits filed around the country.

Passengers claimed that the airlines’ collusion began in early 2009, led to higher fares and reduced flight choices, and together with low fuel prices and higher fees for checking bags and other services helped the industry post record profits.

Southwest has already settled for $15 million, and American Airlines has done the same while Delta and United are still holding out. In settling the case, American denied any wrongdoing. The company, in a statement, said fighting the case in court would be costly.

The deal must be approved by a judge. A final approval is still pending for the Southwest as well.

If the court approves the settlement as proposed, members of the proposed settlement Class will include all persons who purchased flights within the U.S., its territories and the District of Columbia from American Airlines between July 1, 2011 and Dec. 20, 2017.

Guru’s Wrap-Up

This American Airlines settlement be good news for those who have traveled with the airline from 2011 to 2017. It’s not yet known what the payout structure will be and claims cannot be filed yet until the court approves the settlement.


Settlement Details

  • Can’t file claim yet
  • Rebate: Unknown
  • Proof of Purchase: N/A
  • Settlement Pool: $45,000,000
  • Deadline: Unknown
  • Read Settlement Details Here

 

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