American Airlines Settlement, 45 Million Payout for Collusion Lawsuit
American Airlines has agreed to pay $45 million to end a consumer antitrust lawsuit that was brought against the four largest U.S. carriers. This American Airlines settlement comes after accusations of conspiracy to raise fares by limiting the number of seats available to customers. Southwest has already reached a $15 Million settlement and American Airlines has followed suit.
The four airlines increased fares substantially even though demand was unchanged and the price of jet fuel was declining. Executives for those companies are accused of conspiring with one another by limiting consumer ability to compare prices and keeping foreign rivals from entering the market.
As it’s usually the case with these lawsuits, American Airlines has agreed to pay $45 but has admitted no wrongdoing.
The deal must still be approved by a judge. The same goes for the Southwest settlement.
This American Airlines settlement be good news if you often travel with American Airlines. It’s not yet known what the payout structure will be. Claims cannot be filed yet until the court approves the settlement and it’s possible that they will directly contact those eligible.