DOT Levies Historic $50M Penalty on American Airlines for Disabled Passenger Treatment

American Airlines has been hit with a historic $50 million fine by the U.S. Transportation Department for violations related to its treatment of disabled passengers, marking the largest such penalty ever imposed. The fine, announced on Wednesday, is 25 times larger than any previous penalty for disability protection violations and represents what Transportation Secretary Pete Buttigieg describes as a "new precedent" in enforcement actions.

The investigation revealed troubling patterns in American Airlines' handling of disabled passengers, including unsafe physical assistance that led to injuries, undignified treatment of wheelchair users, and systemic failures in providing timely wheelchair assistance. The airline was also identified as one of the worst performers among U.S. carriers in wheelchair handling, with thousands of incidents involving damage or delayed return of mobility devices.

Under the terms of the settlement, American Airlines will pay $25 million over three years, with the remaining $25 million credited for investments in addressing these issues and providing compensation to affected passengers. While not admitting liability, the airline has committed to investing more than $175 million in services, infrastructure, training, and new technology to support passengers using mobility devices.

The airline reports some progress in addressing these concerns, citing a 20% improvement in wheelchair and scooter handling rates since 2022. American Airlines handled approximately 7.9 million advance requests for wheelchair assistance in the previous year, demonstrating the scale of their accessibility services. Julie Rath, American Airlines' senior vice president, affirmed the company's commitment to passenger care in response to the settlement.

The Transportation Department's aggressive stance on accessibility violations appears to be part of a broader enforcement strategy, with officials confirming ongoing investigations into similar violations at other U.S. airlines, though specific carriers were not identified. Secretary Buttigieg emphasized that the substantial penalty is designed to force meaningful changes in industry behavior rather than serving as merely a cost of doing business.