Plaintiff, American Alliance for Equal Rights (AAER), challenges Southwest Airlines’ Lánzate Travel Award Program for being racially discriminatory.

AAER alleges that Southwest provides free flights to students under the Program but limits eligibility to Hispanic students in violation of section 1981 and Title VI.

On August 22, 2024, Southwest Airlines asked the court to dismiss AAER's complaint, arguing that Plaintiff's claims are moot because Southwest has already agreed to open its Program of awarding flight passes to students so that eligibility will no longer be limited by race, ethnicity, or national origin.

On August 29, 2024, the court suspended the proceedings until it resolved Southwest’s Motion to Dismiss. October 17, AAER filed an opposition to Southwest's motion. They acknowledged that if Southwest has changed its eligibility criteria to no longer limit access based on race, ethnicity, or national origin, this would block litigation for future discrimination. However, they argued it wouldn’t stop them from seeking nominal damages of one cent for past discrimination before the change.

Southwest responded, arguing that AAER lacks standing to seek damages for past discrimination, citing case law that prevents organizations from suing for monetary damages on behalf of their members. They also claimed the issue is moot since they already sent the organization a penny while agreeing to adjust their programming, even if the court didn’t require them to do so.

On December 6, 2024, the court dismissed the part of the complaint about future discrimination, as Southwest had agreed to open its program. However, it allowed AAER to pursue claims of past discrimination under Section 1981 and Title VI. The court reasoned that nominal damages did not require the participation of individual members, allowing AAER to proceed on their behalf. It also stated that Southwest’s actions—sending a penny to AAER and adjusting the program in exchange for dropping the case—was merely an offer AAER could reject. By rejecting them, the dispute remained unresolved ("not moot") and active.

Southwest is asking the district court for permission to appeal its dismissal to the Court of Appeals. AAER is not opposing Southwest's request but disagrees on the scope of the appeal. On January 24, 2025, the court denied Southwest's request to appeal the dismissal, stating that the case should proceed in the district court, where a decision would be made on the merits. Any standing issues could be addressed later if the case is appealed after a final judgment.