Spirit Airlines will pay up to $8.25 million to settle a class action lawsuit alleging that it charged unfair “gotcha” fees for carry-on luggage.
The suit claimed that Spirit Airlines charged travelers up to $100 each when their carry-on luggage exceeded size limits, and that the company failed to inform customers of the size limits and fees ahead of time. The settlement agreement – which would need court approval – calls for the airline to stop charging fees for carry-on bags that meet size limits, as well as establish a $7.30 cap on checked bag fees, regardless of weight.
The settlement would also establish an $8.25 million fund to pay class members (up to $100 including legal fees) whose carry-on bags were charged fees in violation of the agreement.
Spirit Airlines denied any wrongdoing but agreed to the settlement in order to avoid a costly trial.