The nation’s largest domestic carrier, American Airlines, has agreed to a $7.5 million settlement to end a lawsuit claiming the company improperly charged baggage fees to certain passengers.

The class-action lawsuit was filed in February 2021 in the United States District Court for the Northern District of Texas. The initial plaintiffs were a handful of passengers from California, Minnesota, Missouri, and Texas.

The class action alleged that the airline knowingly charged passengers baggage fees that should have been waived because of the passengers’ frequent flyer status or qualifying credit card. The lawsuit explains, “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. Yet, AA systematically required these passengers to pay to check bags and thus breached its contract with affected passengers.”

The lawsuit also highlighted posts from social media where users vented their frustration about the baggage fees. One user shared on Twitter, “I guess being Gold only gives you a free checked bag on occasion?!?!”

After checking in their bags with the impression that it was free, the passengers detail that they later received a charge for having done so. Some passengers even explained that they had received email confirmations telling them that they would not be charged for checked bags, only to find their accounts had been charged a checked bag fee.

Checked baggage fees vary for passengers who are not part of the frequent flyer program or do not have a qualifying credit card. These charges range anywhere from $30 for the first checked bag to $200. In 2021, the Bureau of Transportation Statistics recorded that American Airlines had collected roughly $1.2 billion from baggage fees, the highest of any major airline.

The nearly two-year-long litigation process finally reached an end after American Airlines agreed to settle the claims. Despite this, the airline has not agreed to any wrongdoing. The agreement outlines, “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.”

As part of the settlement, passengers who were charged baggage fees between February 24, 2017, and April 9, 2020, will receive a refund for their checked baggage.

The lawsuit states that there are likely thousands more customers who were inappropriately charged for checked bags. As part of the settlement, a “ Robust notice program” has been developed to ensure that qualifying individuals will be able to claim their refund. This robust program includes a widely-distributed press release of the settlement, a website for potential victims to file a claim, and a toll-free number that provides additional information on the settlement details and who qualified.