Airlines Bag Fee Settlement
You may be entitled to a refund under the American Airlines Baggage Fee Class Action Settlement.
The class action complaint alleges that American Airlines breached its contract by charging unfair baggage fees to customers who bought tickets before April 9, 2020.
When you buy an air ticket, a contract is formed between you and the airline. The American Airlines promises to allow certain customers to check a certain number of bags for free, depending on route, cabin, frequent flyer status, and other factors. American breached its contract with Settlement Class Members by charging them to check one or more bags, despite promises to do so for free.
American denies breaching customer agreements or doing anything wrong. However the airline has accepted a proposed settlement agreement to avoid the cost and risk of trial. American would pay $7.5 millions or more to the settlement class under the proposed settlement agreement.
What exactly happened?
In February 2021, multiple consumers filed Class Action complaint against American Airlines, Inc (“AA”). The complaint alleges that American Airlines profits from baggage fees. That AA collected $1.4 billion in baggage fees in 2019 alone. As a marketing ploy, AA offered free checked bags to certain categories of fliers, including:
- frequent flyers who were members of their AAdvantage loyalty program,
- customers who bought first- or business-class tickets, and
- customers who used AA-branded credit cards.
AA failed to program its checked bag terms in the standardized software system. Consequently, several AA passengers were improperly charged, and forced to pay, baggage fees, alleges the complaint.
“Yet, AA systematically required these passengers to pay to check bags and thus breached its contract with affected passengers”
CLEARY, ET AL. V. AMERICA AIRLINES, INC., NO. 4:21-CV-00184-O
What does the settlement offer to the class members?
Before the Court could decide upon the validity of the claims, both parties agreed to a class wide settlement.
Members of the Settlement Class who submit valid Claims in a timely manner will receive refunds. For each valid claim, Class Members will be reimbursed in full for any baggage fees they paid to AA after February 23, 2017, for tickets purchased before April 9, 2020.
AA is set to pay $7.5 millions, or more, to the class. Each passenger could be entitled to receive 100% refund on any improper baggage fee they paid to AA. If the total of all the valid claims is less than $7.5 millions, then the remaining amount would be distributed among the class members on a pro rata basis. Which would mean that class members may eventually receive even more than the baggage fee they paid.
The American Airline Bag Fee Settlement Agreement, reached between the Plaintiffs and AA, is subject to the final approval of the Court.
Can you be a part of this settlement too?
If you were charged to check a bag in an American Airline flight on, or after February 23, 2017, for tickets issued prior to April 9, 2020, you may be eligible to receive a refund in either (or both) of the following scenarios:
- If you received an email confirming purchase of the air travel (a “Confirmation Email”) that stated that passengers could check one or more bag for that ticketed trip for no charge; or
- If you held an American Citi or Barclay’s credit card entitling the passenger to check a first bag for free while traveling in the US.
If you were charged to check your bag(s) on multiple different occasions during the relevant time period, you’d be eligible to receive a refund for each of those charges. All you need to do is submit a valid claim form before the deadline.
As per bag fee settlement, class members can be eligible to receive a refund of $25 to $200 for each checked bag.
How can you recover money from this Settlement?
To receive money from this settlement, you must submit a Claim Form by February 22, 2023.
- Submit a claim online by filling up this form, on the Official Settlement Website.
- You may click here to download the Claim form. Complete, print, sign, and date the Claim Form. Keep a copy of the completed Claim Form for your own records. Mail or email the Claim Form with the required documentation to the Settlement Administrator at: CLEARY V. AMERICAN AIRLINES SETTLEMENT, c/o A.B. DATA, LTD., P.O. BOX 173053, MILWAUKEE, WI 53217.
- You may also email the completed claim form to [email protected].
The proposed deadline for filing a claim is February 22, 2023. Please note that the Settlement is subject to the final approval of the Court. A Fairness Hearing is scheduled on May 5, 2023. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. You can visit the the official settlement website to stay up-to-date about the result of the hearing.
Where can you get more information about this?
Not sure if you belong in the Class? Have other questions about the Settlement?
- Read the FAQs on the Official Settlement Website: https://www.bagfeesettlement.com/
- Email the Official Settlement Administrator at: [email protected]
- Call the Official Settlement Administrator at 1-877-868-6827 (Toll-Free)
- Write to the Official Settlement Administrator at: Cleary v. American Airlines Settlement, c/o A.B. Data, LTD., P.O. Box 173053, Milwaukee, WI 53217.
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