Spirit Airlines agrees to pay $8.25 million in settlement for undisclosed baggage fees.

Spirit ⁢Airlines Settles Class⁣ Action Lawsuit Over Baggage Fees

Spirit ​Airlines has reached an $8.25 million‍ settlement ‌in ‍a ⁤class action lawsuit that ⁢accused the low-cost carrier of deceiving passengers with hidden baggage fees. The lawsuit, filed by plaintiff​ Thomas Cox in 2017, alleged​ that Spirit misled consumers into believing they were purchasing low airfare, only to‍ charge them fraudulent and unwarranted fees.

“In some ‌instances, a carry-on piece of luggage costs as much ‌as four times the‌ cost of a checked piece. Spirit’s bait-and-switch and ‘gotcha’ tactics are designed‌ to confuse, trick,⁣ and trap consumers to⁣ the public’s detriment.”

Fee​ Structure‌ Controversy

The lawsuit claimed that Spirit did not clearly disclose its fee structure to customers ​who purchased tickets through third-party vendors. The ⁣nature‍ of the airline’s baggage fees was deemed misleading. Customers⁣ who paid their baggage fees ⁢online before arriving at the airport paid the least amount, ​while ​fees increased incrementally for those who paid at ‌the airport, sometimes reaching up to $100. Bags checked⁢ ahead of time usually cost around $40.

Former⁢ Spirit‌ CEO Ben Baldanza referred to the $100 baggage fee as a ‍penalty, but customers were⁢ not informed in advance that they would⁢ be subject to this penalty.

The Settlement

The settlement, agreed ​upon by nine plaintiffs, ​includes first-time fliers of Spirit Airlines who purchased tickets ⁤between Aug. 31, 2011, and May ‌3, 2017, from online travel agents such as Expedia, Travelocity, Kiwi, CheapOair, CheapTickets, and BookIt.​ Class members will receive up to 75 percent of the⁢ carry-on ⁤bag ⁢fee they paid, covering all⁤ potential⁤ costs.

Attorneys involved in the case⁢ could receive up to $2.75 ⁢million, while each class representative may receive a ‍maximum of $7,500. The settlement is pending court approval.

Class Members and Damages

Spirit has identified over 800,000 ​potential‍ class members, but approximately 350,000 of them do not have a known mailing address. The⁣ settlement estimates that the list of ‌class members could be lower by 10 percent, resulting in around 720,000 members. The average carry-on ‍fee paid by potential ​class members was $45.83, which, when⁣ multiplied by 720,000, would amount to approximately ‌$33 million in damages.

However, the actual number of class members with non-time barred claims is unknown, so a claims process would have been necessary‍ post-trial.‍ Therefore, Spirit’s trial exposure could ‍have been higher or lower ​than⁤ the agreed settlement ​amount.

Airline Baggage Fees and ⁣Regulations

Airlines are required by the Code of Federal Regulations to clearly disclose baggage fees to passengers who book tickets online.‌ They must promptly and prominently display any increases in carry-on or⁢ checked bag fees on​ their websites. Additionally, airlines or their ⁢ticket agents must clearly and prominently disclose ⁣any additional baggage fees⁣ during ⁤the fare quotation process.

Passengers should also be informed about ‌their free baggage allowance and any applicable fees. The U.S. Department ‍of Transportation holds airlines responsible for repairing lost, delayed,⁤ or damaged baggage.