United Airlines Signs $27.5 Million Accord Over Buyout Programs

United Airlines Inc. agreed to pay $27.5 million to settle a lawsuit by former employees who say the carrier mishandled recent voluntary buyout programs, heading off a pending appeal.

The deal is expected to benefit about 8,500 former employees who retired between August 2017 and December 2020 and weren’t eligible for certain voluntary buyout programs later offered to workers. The airline also agreed to provide each class member with eight vacation passes for United flights.

The $27.5 million settlement amount is “substantial,” given that United secured dismissal of the lawsuit and the workers were attempting to press their claims on ...