Southwest Airlines to pay $15M to settle price collusion lawsuit

Jan. 4 (UPI) -- Southwest Airlines announced this week that it will pay $15 million to settle a lawsuit that alleged the Dallas-based company engaged in price collusion with other airlines.

Southwest was hit with a lawsuit in 2015 on behalf of a several passengers that alleged the company colluded with Delta, United and American Airlines to keep prices artificially high. Southwest denied any wrongdoing.

"We did not enter into any unlawful agreements with other airlines, against which we compete vigorously, and this settlement does not constitute any admission of wrongdoing," Southwest spokesman Brad Hawkins said, according to the Dallas Morning News. "We're entering into this settlement to avoid considerable distraction and expense of protracted class-action litigation."

Although the settlement was approved by a federal judge, plaintiffs will have a chance to accept or deny the agreement.

The other three airlines said accused in the lawsuit, which consisted of 23 different antitrust lawsuits that were all consolidated last year, the Los Angeles Times reported.

"Delta has built its business success through an unwavering commitment to its customers and employees," the Atlanta-based airline said. "The assertion that our success is due to anything more than the hard work of our people is not only ridiculous, it is offensive. The simple fact is that Delta has not engaged in any illegal behavior."

The lawsuit filed against the four airlines accuse them of controlling 80 percent of the domestic air travel market over the past 10 years and colluding with each other to keep prices high.

"During that period, they have eliminated unprofitable flights, filled a higher percentage of seats on planes and made a very public effort to slow growth in order to command higher airfares," one of the complaints included in the class action lawsuit stated.