DOT has now asked American Airlines to use the $16.7 million as investments to benefit fliers with disabilities.
The U.S. Department of Transportation has waived part of the fine that the Biden administration issued to American Airlines last year. In 2024, the agency penalized the carrier for violating laws protecting travelers with disabilities and levied a historic $50 million fine to set a precedent. However, the Trump administration has waived $16.7 million and instead requires American Airlines to purchase wheelchair lifts and mobile devices and update its technology.
In 2024, a department investigation found that the airline committed multiple violations over a four-year period, resulting in injuries and undignified treatment of people with disabilities. American Airlines also delayed returning wheelchairs and damaged them during transportation.
Former Transportation Secretary Pete Buttigieg said the department was setting a new standard of accountability. “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.”
As part of the penalty, the airline was required to pay $25 million to the U.S. Treasury over three years, and $25 million was to be used for investments to buy equipment, update wheelchair tagging systems, and compensate affected passengers.
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DOT has now asked American Airlines to use the $16.7 million as investments to benefit fliers with disabilities. It requires the carrier to buy 119 wheelchair lifts at Chicago, Philadelphia, and Miami airports. Additionally, American Airlines will need to update its software to track wheelchairs. The department said, “This is a better solution than sending money to the U.S. Treasury because now real, tangible benefits will go to the traveling public.”
American Airlines welcomed the directive, saying, “With this agreement, instead of money simply going to the U.S. Treasury, American will invest millions more to further improve the travel experience for customers who use wheelchairs and other mobility devices.”
Recently, Southwest also received a break from DOT. The department waived part of its fines stemming from the airline’s 2022 meltdown. Southwest was fined $140 million in 2023 after it canceled nearly 17,000 flights during the busy holiday season in December 2022, which affected more than 2 million fliers. The penalty, DOT explained, was imposed because the airline failed to provide customer service assistance, flight status notifications, and refunds. It was required to pay $35 million to the U.S. Treasury, while $105 million was set aside to compensate passengers. The airline has paid $24 million to the government, and the remaining $11 million will be used as “credit” to help improve its performance.
Southwest thanked the department and Secretary Sean Duffy. “During the last two years, Southwest successfully completed an operational turnaround that directly benefits our Customers with industry leading on-time performance and percentage of completed flights without cancellations.” The airline said it has invested in modernizing its operations and eliminated problems that caused the meltdown.
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In another major shift from the previous administration, the department has revoked a proposed rule that would have required airlines to compensate passengers with cash after delays and disruptions.
