American Airlines has agreed to settle a three‑year-old lawsuit alleging collusion and antitrust violations by domestic carriers, with the settlement totaling $45 million.
The suit alleged that American, Delta, Southwest and United coordinated to keep airfares elevated even as demand and fuel costs fell. The case claimed the airlines’ actions had the effect of suppressing competition and maintaining higher ticket prices for travelers.
American’s spokesperson, Matt Miller, said the carrier did not admit any wrongdoing as part of the settlement. Miller emphasized that American substantially increased capacity during the period at issue and that fares dropped to near‑record lows.
“Despite our firm conviction in the appropriateness of our actions, costs to defend against antitrust litigation often run into the tens of millions of dollars,” Miller said. “So while it is difficult to agree to a settlement when we believe we were right on the law and the facts, settling this case is a prudent decision for American.”
The allegations first came to public attention in June 2015, when U.S. Senator Richard Blumenthal (D‑Conn.) filed a complaint with the Department of Justice asking it to investigate potential anticompetitive behavior among the airlines. By 2017, the DOJ had stepped back from pursuing the investigation, citing limited evidence.
American is the second carrier to resolve claims in this matter. In January, Southwest reached a $15 million settlement while also maintaining that it did not violate the law.
The settlement closes a chapter in a dispute that drew scrutiny to pricing practices in the airline industry and highlights the high cost of antitrust litigation even when companies contest the allegations. Travelers and industry observers continue to watch how major carriers set capacity and fares, and regulators may still consider whether changes in oversight or enforcement are warranted.