Michael A. Kakuk  |  April 14, 2017

Category: Consumer News

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American Airlines Boeing 737-800 in new liveryA class action against American Airlines alleges the company breached its contract with customers who canceled their flights, by not allowing them to fully redeem the cost of their tickets on other flights.

The complaint claims that some of the important terms of the agreement between customers and American Airlines are ambiguous, and others “are misleading, and perhaps, fraudulent.”

Finally, the class action asserts that some terms in American Airlines’ contracts are “unconscionable, repugnant, and contrary to the rules of law governing contracts in general.”

Plaintiffs Lynn and Judith Robinson say they purchased two tickets from American Airlines in February of 2016 to go round-trip from New York to Paris. The Robinsons state those tickets cost $2,700.32 in total, after paying several fees for federal transportation taxes, security fees, and facility charges. The Robinsons say they ended up canceling their trip based on terrorism concerns in Paris and Europe in general.

The complaint makes clear that the Robinsons are not disputing that their tickets were non-refundable, meaning that they could not get their money back. However, the Robinsons were issued “money-credits” by American Airlines that they thought they could use in the future on other flights.

However, when the Robinsons booked a second flight from Dallas to Honolulu they were allegedly charged a “ticket change” fee of $300 per ticket, which was deducted from their money-credits. The Robinsons were unable to make that flight, and canceled it as well.

In February of 2017, the Robinsons called American Airlines to again use their money-credits, and discovered that the credit was only good for one year. Mr. Robinson claims that he asked for an extension of time to use the credit, but was denied.

According to the class action, the Robinsons “knew and understood that their payment of money to AA was non-refundable.” However, the complaint goes on to state that the Robinsons “did not know, understand or knowingly agree their payment was forfeitable and confiscable by AA.” In short, the complaint asserts that “AA confiscated and is keeping the money they paid and will not provide them the transportation they paid for or anything else of equal value in return.”

The American Airlines unlawful contract class action lawsuit asserts that the company was unreasonable by applying a one-year limitation on the use of credit. In addition, the complaint contends that American Airlines’ practice of charging “change fees” is illegal, and that several terms in the company’s “Conditions of Carriage” (the contract) are ambiguous, misleading, and unenforceable.

The plaintiffs request certification of a Class of all persons in the U.S. and “around the world” who paid: (a) money to American Airlines for tickets, “but were never provided transportation and AA kept their money;” and (b) fees to American Airlines that the company either kept or submitted to government entities, but should not have since the tickets were never used. The class action seeks “actual, compensatory and punitive damages” for all potential Class Members.

The Robinsons are represented by Jeffrey Martin of Jeff Martin & Associates PC.

The American Airlines Unlawful Contract Class Action Lawsuit is Lynn Robinson, et al. v. American Airlines Inc. d/b/a American Airlines, Case No. 5:17-cv-00426, in the U.S. District Court for the Western District of Oklahoma.

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34 thoughts onAmerican Airlines Class Action Alleges Unlawful Ticket Refund Policy

  1. Annelise says:

    I had a problem with American Airlines in April of 2016. I had a family emergency at home in Iowa and had to leave Texas early. Airline said they would not let me go early on my round trip ticket that I purchased and I had to pay another round trip ticket just to get home early. So they made money of me twice.

  2. Tammy Gillaspie says:

    I purchased 2 tickets to Jamaica and my boyfriend couldn’t go and we purchased all the insurance and they would not refund us and they are making him pay more money to use his ticket for another date to go somewhere else and they gave him a year to use it by.

  3. Tammy Gillaspie says:

    I also bought 2 tickets to Jamaica and my boyfriend couldn’t go and they would not give us our money back and he has to pay extra to use his ticket for another date, and they only gave him a year to use it.

  4. MichalAnne Harris-McNeil says:

    On 12/20/16 I was schedule to fly out of Miami Internaional Airprrt. Using American Airlines ticket was booked in November 2016. My flight was schedule to leave at 8:05 pm, on the 12/20/16. I arrived at or around 5:00-5:15pm. There were not enough employees working, for the amount of people boarding that evening. The flight was cancel because by the time I got to counter, it was too late. Lost my luggage, and my tags were removed,and so tried to cut in my luggage.

  5. Kevin W Isaacs Sr says:

    This has happened to me on countless times. American Airlines also charge you to utilize your points to book flights.

  6. Mickey Miller says:

    Me and my sister booked a flight from New York to Georgia for a family Reunion due to the weather they said we could not leave that day so we had to rebook with another airline for the next day after spending that whole at the airport we were charged the rebooking fee and all the other stuff you have to do and on top of that it made us lose a day at the reunion and events we hsd already had paid for and the hotel for one nite we did even use they could have told us sooner and we could have made other arrangements i will be watching this closely too

  7. Erandi says:

    I do not know about American Airlines, but it happened to me for a ticket I bought with Aeromexico through Expedia… It was cheaper to buy a new ticket than use my cancellation credit… :(

  8. Tiffany says:

    i have the same issue with american, I bought a fully refundable first class ticket and also switched my flight several times before i cancelled, and the flight was cancelled shortly after i cancelled my flight..700$ on the first ticket, 410 dollars x 2 plus some other fees.. i asked the aa customer service rep after before i cancelled my trip, that indeed have a fully refundable ticket.. he said yes and told me to go to their AA refund website, i went to submit refund and they asked for my reason, and needed more info!!?!! I have sent them a certified letter demanding payment, with no response..American Airlines does not care for their customers, I have never had one of my trips with American go smoothly, it speaks to why they are always filing bankruptcy.. Who can I speak to about this suit?

  9. sergey says:

    Earned miles are also money credit. Why they have an expiration day?
    Airline money with expiration day….

    P.S. By the way – Delta miles expired

    1. steve Murphy says:

      Never heard of Delta miles expiring. Just checked my account and it clearly says miles never expire. As far as AA and non-refundable tix and insane “change fees”, I’ve never read fine print, but I do know that if I do not make a flight, the residual value from that tix will be greatly reduced by these fees, in many cases leaving zero value. Applies to all major airlines except SW. Thus if I can use Southwest in any reasonable way, that’s what I do every time.

      I dislike AA personally, since 1993 when they shafted a buddy out of $50, and have used them maybe twice since. But I am finding it hard to see grounds for complaint here, not that I would mind this action being successful.

  10. FredH says:

    I’m in a similar situation and will be watching this closely

    1. Laticia says:

      I had a similar situation: with AA I bought 3 tickets from Tulsa International to Jacksonville Florida in the amount of $1100 one of my daughters got sick and the doctor told us that she could not fly due to her blood platelets were too low. AA told me that I could only get a partial of that money back even with the doctor agreed to write a letter to the airline stating this. I was still only granted $500 back of the $1100. I think its really sad that they just take your money and think anything of it.

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