American Airlines To Pay At Least $7.5 Million In Lawsuit Over Baggage Fees

American Airlines has settled a class-action lawsuit and agreed to pay a minimum of $7.5 million for overcharging customers for baggage fees. The sum is more than six times the $1.2 million that the carrier took in last year for such fees, which was significantly more than any other U.S. airline, according to data from the Bureau of Transportation Statistics (BTS).

“There is no limit or cap on the amount of money American will pay above $7.5 million and American will pay settlement administration costs and attorneys’ fee in addition (on top) of the 100% refund paid to claiming Settlement Class members,” according to the agreement.

American Airlines charges passengers between $30 for one checked bag up to $200 for four or more checked bags flying on domestic flights and similar amounts when flying to most international destinations. But there are several ways to get those fees waived. One of the perks of the carrier’s AAdvantage loyalty program is being able to check between one and three bags for free, depending on status level.

In Cleary et al. v. American Airlines, Inc., a small group of passengers from four states — California, Minnesota, Missouri and Texas — filed a federal suit in Texas, where the airline is headquartered, claiming they were entitled to waived fees through their airline status, or because they owned an American Airlines-partnered credit card that promised free checked baggage. Customers had received confirmation that they would not have to pay for checked luggage, but were charged anyway when they arrived at the airport and checked their bags.

Filed in February 2021, the lawsuit alleged that American breached its contract with customers by wrongfully charging the baggage fees.

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“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, customers who purchased first or business class tickets, and customers who held AA’s branded credit cards,” the complaint said. “Yet, AA systematically required these passengers to pay to check bags and thus breached its contract with affected passengers.”

The lawsuit detailed how “many passengers reported, on Twitter and other public discussion forums, that AA required them to pay for checked bags that AA was obliged to transport for free.” For example, in April 2019, a passenger complained on Twitter that “I guess being Gold only gives you a free checked bag on occasion?!?!” In January 2020, a passenger complained on Twitter that airline staff “still insist on charging me for my third bag” despite her Executive Platinum status. In February 2020, another Executive Platinum member reported on Twitter that American’s computer system allowed him to check only two bags without an additional charge.

With the settlement, passengers who were wrongly charged for baggage fees between February 24, 2017, and April 9, 2020, are eligible for $25 to $200 refunds for each inappropriate charge.

Per the lawsuit, the plaintiffs believe there are thousands of such customers geographically dispersed throughout the United States. The settlement provides for a “robust notice program” to claimants that includes a combination of email and mail; multiple reminder emails; a widely distributed press release and a dedicated website where people can submit claims online; and an informational toll-free number.

American Airlines declined to comment for this story.