American Airlines has settled a class-action lawsuit in which it was accused of charging passengers checked bag fees despite promising free checked bags for certain ticket classes.
Court documents show American has settled the lawsuit for at least $7.5 million and will refund improperly charged bag fees.
The airline was accused of breaching its contract after failing to provide free checked bags that were promised to travelers.
The fees, according to filings, were charged between 2013 and 2021 and put plaintiffs and the airline through two years of litigation.
Details of the settlement were revealed in a motion filed in a Texas federal court on Friday.
Court documents stated that "Rather than risk trial and appeal, which could lead to class members getting zero or less than-full compensation at an uncertain time later, the settlement gives every settlement class member a guaranteed opportunity now to get 100% compensation."
The airline will also pay administrative costs and attorney fees from the suit.
Passengers in the suit say American allegedly charged checked bag fees to some credit card holders and frequent or first-class flyers.
