Southwest Airlines Agrees to $15M Settlement, Ending Price Collusion Lawsuit
A class-action lawsuit against Southwest Airline just came to a close, thanks to a federal judge approving a $15 million settlement. The lawsuit itself stemmed from accusations that Southwest, “along with three other airlines, conspired to limit the number of seats available to customers and keep ticket prices high.” According to the lawsuit the “conspiracy began in 2009,” and since then, “the cost of airfare with Southwest, American, Delta and United — which plaintiffs claimed collectively controls about 80 percent of domestic passenger seats — rose substantially compared to those of other domestic air carriers, despite stagnant or decreasing demand and declines in the cost of jet fuel.” As a result of the pricing conspiracy, the lawsuit accused Southwest and the other airlines of violating federal antitrust laws and said, “Passengers have been injured by paying higher airfares and facing reduced flight choices.”