US Waives $16.7m American Airlines Fine for Accessibility Upgrades

The US Department of Transportation (DOT) has waived the remaining USD16.7 million of a USD25 million fine imposed on American Airlines (AA, Dallas/Fort Worth) in 2024 over failures to provide adequate service to passengers using wheelchairs and mobility scooters. Instead of paying the balance to the government, the airline will be required to invest the funds directly into service improvements.

According to the DOT, the decision is intended to encourage meaningful improvements for passengers with disabilities. The regulator said the approach ensures travelers benefit directly from airline investments, rather than the penalty being absorbed as a government payment.

American Airlines reached a settlement with the Office of Aviation Consumer Protection in October 2024 covering a total USD50 million civil penalty. Under the agreement, USD25 million was allocated as a government fine, while the remaining USD25 million was to be credited toward investments in passenger service enhancements.

The carrier paid the first USD8.3 million installment of the fine in November 2024 and was scheduled to make two additional payments in November 2025 and November 2026. These remaining payments have now been waived on the condition that American Airlines invests USD16.1 million in accessibility-related improvements, including additional wheelchairs, wheelchair lifts, and mobile devices and software upgrades for frontline staff. The DOT also credited the airline with USD700,000 in qualifying investments made during 2024 and 2025.

The move follows a similar DOT decision involving Southwest Airlines, where a monetary penalty was waived in exchange for the carrier committing equivalent funding toward service improvements for passengers with disabilities.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com