Updated Oct 23, 2024 - Economy

American Airlines fined $50M for mistreating passengers with disabilities

April Rubin

American Airlines planes seen parked at a terminal next to each other — American Airlines passenger jets are lined up on the gates at Washingtons Reagan National Airport on Feb. 10 in Arlington, Virginia. Photo: J. David Ake/Getty Images

The U.S. Department of Transportation (DOT) slapped American Airlines with a record-setting $50 million fine on Wednesday for violating laws meant to protect passengers with disabilities.

The big picture: American Airlines was one of the worst performers among U.S. airlines in wheelchair and scooter mishandling claims and the rate of mishandling claims, the DOT said in a release announcing the penalty for violations between 2019 and 2023.

The settlement will "continue the airline's significant actions to improve the travel experience for customers traveling with wheelchairs and mobility devices,"American Airlines said in a statement.

Driving the news: The airline conducted "unsafe physical assistance that at times resulted in injuries and undignified treatment of wheelchair users," the DOT said.

The airline also failed to provide prompt wheelchair assistance and mishandled wheelchairs by damaging them or delaying their return.

By the numbers: The $50 million penalty is 25 times larger than previous Transportation Department fines against airlines for violations of disability protections.

Half will go to the U.S. Treasury. The other half will be credited to American Airlines for investment in improvements on its wheelchair handling and compensation to affected passengers.

What they're saying: "By setting penalties at levels beyond a mere cost of doing business for airlines, we're aiming to change how the industry behaves and prevent these kinds of abuses from happening in the first place," U.S. Transportation Secretary Pete Buttigieg said in a statement.

If American doesn't use the $25 million toward improvements, it will also be paid to the U.S. Treasury.

State of play: American Airlines said it has improved its "wheelchair and scooter handling rate" by more than 20% since 2022.

The company said it has invested in wheelchair lifts at more than 20 airports and plans to install five more by the end of the year.

Zoom in: The Department of Transportation reviewed complaints against the airline, including three filed by Paralyzed Veterans of America.

An incident at Miami International Airport, captured on video, included airline personnel dropping a wheelchair down a baggage ramp.

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Editor's note: This story has been updated with a statement from American Airlines.

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American Airlines fined $50M for mistreating passengers with disabilities

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