Headline: American Airlines Hit with Record-Breaking Fine

The U.S. Department of Transportation has imposed a record $50 million fine on American Airlines for its treatment of disabled passengers. Announced today, this is the largest penalty ever levied for violations of disability protections in the aviation industry, surpassing the previous highest fine by 25 times.

Transportation Secretary Pete Buttigieg stated that this action demonstrates the end of tolerance for substandard treatment of airline passengers. Buttigieg emphasized his intention to influence industry standards by setting fines that exceed the usual cost of doing business.

As part of the agreement, American Airlines will pay $25 million over the next three years. The airline was also given a $25 million credit for investments to improve the situation and goodwill compensation provided to affected passengers.

Julie Rath, American Airlines' Senior Vice President, reaffirmed the airline's commitment to diligently serving all customers in response to the agreement.

Findings by the Department of Transportation included repeated failures such as unsafe physical assistance that led to injuries, degrading treatment of wheelchair-using passengers, and the failure to provide timely wheelchair assistance. American Airlines was also found to have mishandled thousands of wheelchairs, either damaging them or delaying their return, ranking among the worst airlines in the U.S. for this issue.

While American Airlines does not admit any liability as part of the agreement, it announced plans to invest over $175 million in services, infrastructure, training, and new technology to better support passengers using mobility devices. The airline reported more than a 20% improvement in wheelchair and scooter handling since 2022 and received 7.9 million requests for pre-arranged wheelchair assistance last year.

The Department of Transportation has ongoing investigations into similar issues with other U.S. airlines, though these carriers have not been named.