$7.5 Million Refunds From American Airlines Settlement
American Airlines has settled a class-action lawsuit with passengers who were wrongly charged baggage fees. The airline has agreed to pay $7.5 million to refund customers who paid checked baggage fees between 2013 and 2021. Five passengers filed the lawsuit in February 2021, claiming that they were forced to pay for bags at the airport counter despite purchasing tickets online that included free checked bags.
To receive a refund, passengers must submit email proof they were charged baggage fees on an American Airlines ticket including free checked bags. Travelers who booked a flight using an American Airlines-branded Citibank or Barclays credit card are also eligible for refunds, as those cards offer free baggage checks. The refund process is an opportunity for affected passengers to receive compensation for the wrongful charging of baggage fees.
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According to CBSNews, the settlement comes after President Biden proposed new rules to crack down on hidden airline fees. The proposal would force airlines and third-party booking sites to disclose any potential add-on costs, like cancellation fees or baggage fees, along with the ticket price. This underscores the importance of transparency in airline fees and the need for greater regulation to protect consumers.
Extra fees are big business for airlines like American, Delta, and Southwest. U.S. airlines generated $1.8 billion in baggage fees in the second quarter of 2021, while the top 20 airlines globally generated a total of nearly $21 billion in baggage fee revenue last year, according to an estimate from IdeaWorks. This settlement highlights the need for greater accountability and transparency from airlines regarding fees and pricing.
Overall, the American Airlines settlement offers an opportunity for affected passengers to receive compensation for the wrongful charging of baggage fees. The settlement underscores the importance of transparency in airline fees and the need for greater regulation to protect consumers. Passengers who believe they are eligible for a refund should apply.
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