Domestic Airline Settlement: Eligibility, Delays, and Delta/United Case

If you’re looking into the domestic airline settlement, here is where things stand: American Airlines and Southwest Airlines have agreed to pay a combined $60 million to resolve claims that they conspired with Delta and United to keep ticket prices high, but none of that money has been distributed, no claims process has opened, and no filing deadline exists. The funds sit in escrow while the case against Delta and United continues.¹

What the Case Is About

The lawsuit, consolidated as MDL No. 2656 in the U.S. District Court for the District of Columbia, accuses the four largest U.S. airlines of violating Section 1 of the Sherman Act by coordinating to limit the number of seats on domestic flights, which plaintiffs say pushed fares higher.² Plaintiffs point to public statements by airline executives from January 2009 through mid-2015; the court noted roughly 230 references to “capacity discipline” in public disclosures during that span.³

Southwest settled first in late 2017 for $15 million and agreed to cooperate against the other defendants.⁴ American followed in 2018 with a $45 million settlement, without admitting wrongdoing.⁵ Judge Colleen Kollar-Kotelly gave both settlements final approval on May 13, 2019.⁶

Who Is Eligible

The class covers any person or entity that bought air passenger transportation on flights within the United States, its territories, or the District of Columbia from American, Southwest, or any of their predecessors, subsidiaries, or affiliates, which includes US Airways and Continental Airlines.¹ Two class periods apply:

Southwest class period: July 1, 2011 through December 20, 2017.⁷
American class period: July 1, 2011 through June 14, 2018.⁷

Excluded are the defendants themselves and their officers, directors, employees, and immediate families, along with governmental entities and judges or court staff assigned to the case.⁷ Ticket purchases from Delta or United are not part of any settlement, because those airlines have not settled.

Why No Money Has Been Paid Out

Under the terms of the May 2019 approval order, the $60 million, minus court-approved notice costs, stays in escrow until the case against Delta and United ends, whether by settlement, dismissal, or verdict.¹ That is why there is no claims administrator, no claim form, and no deadline. The official settlement website confirms the claims period has not started.⁷

How the money will eventually be allocated has not been decided either. It has not been determined whether individual payments will go directly to class members or whether some or all of the fund will be routed to third-party recipients through a cy pres distribution.⁷

What You Can Do Now

If you think you may be eligible, you can register at domesticairclass.com to receive notice when a distribution plan is set and a claims process opens.⁷ There is nothing else to file right now. Any website or service asking you to submit a claim form for this settlement today is not part of the court-approved process, because that process does not yet exist.

Objections and the Cy Pres Concern

The settlements drew objections from Ted Frank and Frank Bednarz of the Center for Class Action Fairness, who argued that neither the settlement agreements nor the class notice explained how money would reach passengers, and that the full $60 million could end up going to charitable recipients rather than to ticket buyers. They calculated that the fund works out to less than five cents per flight over the class period.⁸ Ten state attorneys general separately asked the court in January 2019 to delay a ruling on attorneys’ fees.⁹

Judge Kollar-Kotelly overruled the objections at the March 2019 fairness hearing, reasoning that distribution details are typically not finalized until an entire case is resolved.⁹ Frank and Bednarz appealed, and on July 9, 2021, the D.C. Circuit dismissed the appeal for lack of jurisdiction, holding that the approval order was not a final, appealable judgment while claims against Delta and United remained pending.¹⁰ The panel suggested the objectors wait to see whether a cy pres distribution is actually proposed before challenging one.¹¹

Where the Case Against Delta and United Stands

Delta and United are the only remaining defendants. On September 12, 2023, Judge Kollar-Kotelly denied both airlines’ motions for summary judgment in full, keeping the case on track toward trial.² On September 28, 2023, Delta and United moved for certification of an interlocutory appeal or reconsideration of that order, and plaintiffs opposed the request.⁹ As of late 2023, the court had not ruled on that motion, and no trial date had been set.¹

Until the litigation against Delta and United concludes, the American and Southwest funds cannot be released and the distribution plan cannot be finalized. Registering on the settlement website is the only step available to eligible passengers at this stage.

1
DomesticAirClass.com. Domestic Airline Travel Antitrust Litigation Settlement
2
Berger Fischoff Alexander Leventhal. Domestic Airline Travel
3
FindLaw. In Re Domestic Airline Travel Antitrust Litigation, Memorandum Opinion
4
Top Class Actions. Domestic Airlines Price-Fixing Class Action Lawsuits Settlements Still in Limbo
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Courthouse News Service. American Airlines Fined $45 Million in Antitrust Case
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Block & Leviton LLP. Domestic Airline Travel Antitrust Litigation
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DomesticAirClass.com. FAQ
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Hamilton Lincoln Law Institute. Domestic Air
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Law360. In Re Domestic Airline Travel Antitrust Litigation, Case Articles
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FindLaw. In Re Domestic Airline Travel Antitrust Litigation, D.C. Circuit Opinion
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Courthouse News Service. Challenge to Airline Monopoly Settlement Ruled Premature