Airlines Caught In Airfare Scandal: Antitrust Lawsuit Shakes Delta, United

Delta Air Lines Inc. DAL and United Airlines Holdings Inc. UAL find themselves at the center of an antitrust class action lawsuit.

The accusations? Conspiring to inflate airfares across the U.S. by artfully reducing available seats on domestic flights.

U.S. District Judge Colleen Kollar-Kotelly dropped a legal bombshell on Tuesday, greenlighting the antitrust class action lawsuit, as Reuters reported.

Airfare Conspiracy Unveiled?

The decision was based on the submission of substantial circumstantial evidence that indicates the carriers engaged in a dubious practice they themselves have termed “capacity discipline.” This revelation has sent shockwaves through the airlines industry.

But Delta and United aren’t the sole actors in this high-altitude drama. American Airlines Group Inc. (AAL) and Southwest Airlines Co. LUV also found themselves in the legal crosshairs, albeit briefly. The key difference? American Airlines and Southwest settled the lawsuit for $45 million and $15 million, respectively, without admitting any wrongdoing, leaving Delta and United to confront the legal turbulence on their own.

In response to the lawsuit, Delta Air Lines announced its intent to vigorously defend itself. Meanwhile, United Airlines is contemplating an appeal in light of Tuesday’s pivotal ruling.

The U.S. Global Jets ETF JETS fell 2.7% on Wednesday, posting its worst daily performance since early May 2023.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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