British Airways pays $90m to settle US lawsuit over price fixing

British Airways is paying $89.5m (£54.5m)to settle a claim brought by customers in the US affected by an international price fixing cartel for air cargo that took place between 2000 and 2006.

The long-running dispute, which has so far cost the airline some £200m in fines in the US and the EU, is yet to be concluded as civil cases are still outstanding in the UK.

BA is now part of IAG, the group formed through the merger of British Airways and Iberia and headed by the former BA boss Willie Walsh.

BA is the tenth airline to settle the civil claims brought in the US, which was heralded by Michael Hausfeld of Hausfeld LLP, the co-lead counsel principally responsible for foreign law claims, as "an excellent result". "BA has now taken an important step toward paying damages for its admitted price-fixing conduct. We will continue our efforts to pursue recoveries for the huge number of victims of this cartel both in the US and around the world. It is long overdue that the companies found to have engaged in price-fixing by public enforcement agencies make restitution to all of their victims, everywhere in the world," Hausfield said.

BA said it was "pleased" to reach the settlement with cargo customers in the US.

The EU fined 11 airlines – including BA – last year for fixing the price of air cargo under which airlines ensured that worldwide air freight carriers imposed a flat rate surcharge for all shipments. The US department of justice has charged 18 airlines with the offences.

The air cargo case is separate to the price fixing charges that were levelled against former BA executives over fuel charges that were agreed with Virgin Atlantic. BA admitted that between August 2004 and January 2006 it had colluded with Virgin Atlantic over surcharges on tickets and while the airline was fined over the matter charges against former and current BA directors collapsed a year ago .