Southwest Airlines Class Action Lawsuits and Settlements

Southwest Airlines is facing or has recently resolved several class action lawsuits, including a $15 million antitrust settlement over domestic airfares, an $18.5 million military leave settlement for employees, a pending FMLA case brought by flight attendants, a New York wage-timing suit filed by baggage and cargo handlers, and a 401(k) mismanagement case brought by retirement plan participants. Whether you can claim money depends on which case applies to you, and in most of them, payouts have not yet been distributed.

Here is where each case stands and who it covers.

Domestic Airfare Antitrust Settlement

Southwest agreed to pay $15 million to settle its portion of In re Domestic Airline Travel Antitrust Litigation, a multidistrict case (MDL No. 2656) before Judge Colleen Kollar-Kotelly in the U.S. District Court for the District of Columbia.1DomesticAirClass.com. Domestic Airlines Class Action Settlement Notice The lawsuit accuses the country’s largest carriers of conspiring to limit domestic flight capacity and keep fares artificially high. American Airlines settled for $45 million, bringing the recovered total to $60 million.2BFALaw.com. Domestic Airline Travel

The class covers anyone who bought domestic air travel from American, Delta, Southwest, United, Continental, or US Airways starting July 1, 2011. The end date depends on the carrier: December 20, 2017, for Southwest, and June 14, 2018, for American.3DomesticAirClass.com. Frequently Asked Questions

No money has been distributed. The Southwest and American settlements have final court approval, but the funds sit in escrow while the case continues against Delta and United. On September 5, 2023, the court denied summary judgment motions from both remaining defendants, sending the case toward trial.2BFALaw.com. Domestic Airline Travel Claims will open only after the whole case ends. Payouts may be small enough that the court could redirect the funds to charities or other beneficiaries instead of issuing individual checks.3DomesticAirClass.com. Frequently Asked Questions

Military Leave Settlement for Southwest Employees

In Huntsman v. Southwest Airlines Co. (N.D. Cal., No. 3:19-cv-00083), nearly 2,800 current and former Southwest employees alleged the airline violated the Uniformed Services Employment and Reemployment Rights Act by refusing to provide paid short-term military leave. The proposed settlement is worth $18.5 million in cash, plus a policy change: Southwest agreed to offer up to ten days of paid short-term military leave per year to eligible employees for at least five years beginning in 2026.4Outten & Golden LLP. Outten & Golden Reaches Historic Settlement With Southwest Airlines

Judge Jacqueline Scott Corley granted preliminary approval on December 11, 2025, and notice was sent to approximately 2,791 class members by February 2026. A final approval hearing was scheduled for May 2026. Each class member’s share will be calculated on a pro rata basis based on rate of pay and dates of military leave.5Justia. Huntsman v. Southwest Airlines Co., Preliminary Approval Order

FMLA Class Action by Flight Attendants

Refuerzo v. Southwest Airlines Co. (N.D. Cal., No. 3:22-cv-00868) alleges that Southwest’s attendance policy, introduced in March 2019, punished flight attendants who used Family and Medical Leave Act benefits. According to the complaint, the policy barred employees who took FMLA leave from participating in a points reduction program that rewarded good attendance. Flight attendants who accumulated 12 disciplinary points faced termination, and the plaintiffs say the policy effectively penalized workers for exercising their legal right to medical or family leave.6Top Class Actions. Judge Grants Class Certification in Southwest FMLA Lawsuit

In September 2024, Judge Corley granted class certification, approving both nationwide and California-specific classes of flight attendants who were denied point reductions and, in some cases, terminated as a result.7LawFirmNewsWire.com. Court Grants Class Certification in Southwest Airlines FMLA Lawsuit The court rejected Southwest’s argument that the claims were preempted by the Railway Labor Act.6Top Class Actions. Judge Grants Class Certification in Southwest FMLA Lawsuit A two-week jury trial is scheduled to begin August 3, 2026.8GovInfo. Refuerzo v. Southwest Airlines Co., Pretrial Order No. 3

New York Wage-Timing Lawsuit

Strain and Garner v. Southwest Airlines Co. (E.D.N.Y., No. 2:24-cv-08885), filed December 30, 2024, is a proposed class action brought by baggage and cargo handlers. They allege Southwest violates New York Labor Law by paying them twice a month instead of weekly. Under New York law, workers who spend more than 25 percent of their time on manual labor, such as loading luggage, cleaning lavatories, or clearing snow, must be paid at least once a week. The suit also brings a federal Fair Labor Standards Act claim for failing to pay earned wages promptly.9GlobeNewsWire. Southwest Airlines Hit With $100 Million Wage and Hour Lawsuit

The plaintiffs seek more than $100 million in liquidated damages. On January 14, 2026, a federal magistrate judge granted collective certification for the FLSA claim, letting similarly situated workers join the case.10Law360. Southwest Workers Nab Collective Cert in NY Late Pay Suit

401(k) Retirement Plan Lawsuit

In Anderson v. Southwest Airlines Co. (N.D. Tex., No. 3:25-cv-00214), three participants in Southwest’s retirement plans allege the airline and its plan committees breached fiduciary duties under the Employee Retirement Income Security Act by keeping the Harbor Capital Appreciation Fund in the plan despite years of underperformance. The plaintiffs say the fund trailed its own benchmark and comparable funds over three-, five-, and nine-year periods ending in 2018, and that a prudent fiduciary would have removed it no later than January 2019.11Justia. Anderson v. Southwest Airlines Co., Memorandum Opinion and Order As of the end of 2023, roughly $2.3 billion, or about 17 percent of total plan assets, was invested in the fund.12PlanAdviser. Federal Judge Allows 401(k) Class Action Suit Against Southwest Airlines

On March 25, 2026, Judge Karen Gren Scholer denied Southwest’s motion to dismiss, and the case moved into discovery.11Justia. Anderson v. Southwest Airlines Co., Memorandum Opinion and Order The defendants filed an answer to the amended complaint in May 2026.13CourtListener. Anderson v. Southwest Airlines Co., Docket

The 2022 Holiday Meltdown Consumer Lawsuit

Southwest’s operational collapse over the 2022 Christmas holiday, which resulted in roughly 17,000 canceled flights and stranded more than two million passengers, produced a proposed consumer class action.14CNN. Southwest Airlines Meltdown Last Fine Waived Days after the meltdown, passenger Eric Capdeville filed Capdeville v. Southwest Airlines Co. (E.D. La., No. 2:22-cv-05590), alleging breach of contract for failing to provide cash refunds and reimburse incidental expenses such as hotels, meals, and alternate transportation.15Bloomberg Law. Southwest Passenger Sues Over Unreimbursed Flight Cancellations The suit sought damages for passengers whose flights were canceled on or after December 24, 2022, who had not received refunds or reimbursements.16Forbes. Southwest Faces Class Action Suit Over Holiday Meltdown

Separate from that lawsuit, the U.S. Department of Transportation imposed a $140 million civil penalty on Southwest in December 2023 for consumer protection violations tied to the meltdown. Part of the penalty required Southwest to build a compensation system providing $75 vouchers to future passengers affected by controllable cancellations or delays of three hours or more.17U.S. Department of Transportation. DOT Penalizes Southwest Airlines $140 Million for 2022 Holiday Meltdown That is a government enforcement action, not a class action you can join.

Other Southwest Cases That Are Not Class Actions

A few high-profile Southwest legal matters are sometimes confused with class actions but are not:

  • A DOT and Department of Justice lawsuit filed in January 2025 over chronically delayed flights on two routes (Chicago Midway to Oakland, and Baltimore to Cleveland) was voluntarily dismissed by DOJ in May 2025.18KERA News. Feds Drop Lawsuit Against Southwest Airlines Over Delayed Flights
  • A shareholder securities fraud case, Teroganesian v. Southwest Airlines Co. (S.D. Tex., No. 23-cv-00115), which alleged Southwest concealed scheduling software problems, was dismissed on April 1, 2026, after the court granted reconsideration.19Kessler Topaz Meltzer & Check LLP. Southwest Airlines Co. Securities Fraud Class Action
  • A shareholder derivative suit, Gusinsky v. Reynolds, filed in July 2025 after Southwest eliminated its “Bags Fly Free” policy, was dismissed with prejudice on March 17, 2026, under a new Texas law requiring three percent share ownership to bring derivative claims.20Foley & Lardner LLP. Meritless Lawsuits No Longer Fly Free in Texas: Gusinsky v. Reynolds

None of these produce payouts for passengers or employees.

How to Tell If You Can Claim Money

If you flew domestically on Southwest, American, Delta, United, Continental, or US Airways between July 1, 2011, and Southwest’s cutoff of December 20, 2017, you fall within the antitrust class, but no claims process has opened yet. If you are a current or former Southwest employee who took short-term military leave, watch for notice tied to the Huntsman settlement’s final approval hearing. If you are a Southwest flight attendant affected by the March 2019 attendance policy, a baggage or cargo handler in New York paid biweekly, or a participant in Southwest’s 401(k) plans invested in the Harbor Capital Appreciation Fund, the relevant cases are still active and no funds are yet available.