The Department of Transportation (DOT) announced Wednesday a fine of $50 million levied on American Airlines for “numerous serious violations of the laws” that protect passengers with disabilities. The fine is 25 times larger than the previous largest airline penalty for violations of disability protections. The agency called it “a new precedent for how DOT will enforce against such violations going forward.”
The Fort Worth-based reported a net profit of $822 million for fiscal year 2023, so the penalty represents 6% of the company’s earnings last year. American Airlines directed Forbes to a statement about the settlement that says the carrier will “continue the airline’s significant actions to improve the travel experience for customers traveling with wheelchairs and mobility devices.”
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The Fort Worth-based reported a net profit of $822 million for fiscal year 2023, so the penalty represents 6% of the company’s earnings last year. American Airlines directed Forbes to a statement about the settlement that says the carrier will “continue the airline’s significant actions to improve the travel experience for customers traveling with wheelchairs and mobility devices.”
Subscribe to Forbes Life: https://www.youtube.com/c/ForbesLife?sub_confirmation=1
Stay Connected
Forbes on Facebook: http://fb.com/forbes
Forbes Video on Twitter: http://www.twitter.com/forbesvideo
Forbes Video on Instagram: http://instagram.com/forbesvideo
More From Forbes: http://forbes.com
Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.
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TravelTranscript
00:00Today on Forbes, American Airlines fined a record $50 million for mistreating disabled customers.
00:09The Department of Transportation, or DOT, announced in late October a fine of $50 million
00:15levied on American Airlines for, quote,
00:18numerous serious violations of the laws that protect passengers with disabilities.
00:23The fine is 25 times larger than the previous largest airline penalty for violations of disability protections.
00:30The agency called it, quote,
00:32a new precedent for how DOT will enforce against such violations going forward.
00:38The Fort Worth-based company reported a net profit of $822 million for fiscal year 2023,
00:45so the penalty represents 6% of the company's earnings last year.
00:50American Airlines directed Forbes to a statement about the settlement.
00:54It says the carrier will, quote,
00:56continue the airline's significant actions to improve the travel experience
01:00for customers traveling with wheelchairs and mobility devices.
01:04U.S. law requires airlines to provide a timely return of wheelchairs and other mobility devices
01:10in the condition in which they were received,
01:12and to provide passengers with disabilities prompt assistance to get on and off aircraft.
01:18American said in its statement that in 2023,
01:21it received more than 8 million requests from customers for wheelchair assistance.
01:26Out of those, less than 1 in 1,000 customers submitted a disability-related complaint.
01:32DOT contended that during the five-year period of its investigation,
01:36American mishandled, quote,
01:38thousands of wheelchairs by damaging them or delaying their return,
01:41leaving travelers without the device they need for mobility.
01:45One incident captured on video at the Miami International Airport
01:48showed American's ground crew dropping a wheelchair down a baggage ramp.
01:53In its statement, American said, quote,
01:55In recognition of the special challenges passengers with disabilities face,
01:59in 2024 alone, American invested more than $175 million
02:04in services, infrastructure, training, and new technology
02:08to help ease their journey and transport their specialized equipment.
02:12As part of the $50 million penalty,
02:15American Airlines must pay a $25 million fine to the U.S. Treasury
02:19and is required to spend the other $25 million
02:22on investments in equipment to reduce incidents of wheelchair damage,
02:25investments to reduce incidents of wheelchair delay,
02:28compensation for affected passengers, and more.
02:32In July 2022, DOT published the Airline Passengers with Disabilities Bill of Rights
02:38to help travelers understand what they're entitled to when they fly.