American Airlines will settle legal action brought about by several passengers who claimed the airline wrongly charged baggage fees. The carrier has agreed to pay at least US $7.5 million to the customers.

The original complaint filed in February 2021 claimed the airline did not honour free checked baggage for some credit card holders and frequent and first-class travellers as advertised.

The suit covers incorrect baggage fees over eight years through 2021

American will now pay full refunds to all customers who file valid claims.

“Rather than risk trial and appeal, which could lead to class members getting zero or less than-full compensation at an uncertain time later, it gives a guaranteed opportunity now to get 100% compensation,” the settlement notice said.

American will also pay all legal costs