U.S. Transportation Department Fines American Airlines

By David Shepardson

(Reuters) – The U.S. Transportation Department announced a record fine of $50 million against American Airlines for its treatment of disabled passengers, including inadequate assistance and mishandling of wheelchairs.

The fine is 25 times larger than the previous highest penalty for disability violations, establishing a “new precedent” for future enforcement, according to the Department. Transportation Secretary Pete Buttigieg stated, “The era of tolerating poor treatment of airline passengers with disabilities is over.” He added that the penalties aim to encourage better behavior from airlines.

As part of a settlement, American will pay $25 million over three years but was credited with $25 million for investments made to address the issues and offer compensation to affected passengers. Julie Rath, senior vice president of American Airlines, reaffirmed the airline's commitment to customer care.

The Transportation Department identified cases of unsafe physical assistance that led to injuries and undignified treatment of wheelchair users, noting repeated failures to provide timely assistance. Additionally, American mishandled thousands of wheelchairs, ranking poorly among U.S. airlines.

The Department currently investigates similar issues with other U.S. carriers but withheld their identities. Although American did not admit liability in the settlement, it announced plans to invest over $175 million this year to enhance services and support for passengers using mobility devices. The airline claims to have improved its wheelchair and scooter handling rate by over 20% since 2022, receiving 7.9 million advance requests for assistance last year.