Judge Orders Delta, United Airlines to Face Class Action Over Alleged Airfare Conspiracy

A federal judge has ordered Delta Air Lines and United Airlines to face a consumer antitrust class action that accuses the Big Four U.S. airlines of conspiring to drive up domestic airfares by reducing the number of available seats, Reuters reported.

"Defendants engaged admittedly and openly in the practice of capacity discipline on domestic flights, with the effect that diminished capacity resulted in higher industry profits," U.S. District Judge Colleen Kollar-Kotelly in Washington, D.C. wrote in a 70-page decision.

The lawsuit began nearly a decade ago after the U.S. Department of Justice launched an investigation into major airlines for potential anticompetitive practices. No charges were brought by the DOJ, however. 

The two other defendants, American Airlines and Southwest Airlines have already settled for $45 million and $15 million, respectively. Nonetheless, neither carrier has admitted any guilt.

Meanwhile, Delta and United attributed their seating capacity reductions to reduced demand, rising fuel prices and the 2008 global financial crisis.

In a statement issued in response to the ruling, Delta promised to fight the lawsuit, saying it "always independently determined its capacity based on market demand."

Payouts related to the American and Southwest settlements finalized in 2019 will not begin until the claims against Delta and United are resolved.

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