American Settles 2 Frequent-Flier Suits

AMR Corp.’s American Airlines will award as many as 5,000 frequent-flier miles or ticket discounts to more than 4 million AAdvantage program members to end a 13-year legal dispute.

The settlement’s value, estimated to exceed $100 million, will depend on whether AAdvantage members select vouchers for discounts or frequent-flier miles, attorneys for the members said. They typically will be allowed to pick vouchers valued at $25 to $75 or receive 1,000 to 5,000 miles.

Judge Lee Preston in Cook County, Ill., approved the settlement that ends two suits brought by American passengers.

The first, filed in 1988, claimed American committed breach of contract and fraud by restricting seats available to AAdvantage members and the dates when frequent-flier miles could be redeemed. The second suit, filed in 1995, challenged an increase in the mileage needed to earn a ticket.

The settlement agreement was reached last month.

AMR shares rose 67 cents to $36.67 on the NYSE.