The United States Department of Transportation has waived the USD16.7 million balance of a USD25 million fine imposed on American Airlines (AA, Dallas/Fort Worth) in 2024 for its failure to provide adequate service to passengers using wheelchairs and mobility scooters. The regulator will instead require the carrier to invest this amount in service improvement.

"DOT believes that this approach incentivises airlines to improve the experience for passengers with disabilities and ensures that passengers directly benefit from the airline’s actions, rather than just the government receiving a monetary penalty," the regulator said.

The airline settled with the Office of Aviation Consumer Protection in October 2024 for a USD50 million civil penalty, which was to include a USD25 million fine payable to the government and USD25 million credited against investment in service improvements.

American Airlines paid the first USD8.3 million instalment of the fine in November 2024, and was due to pay two more instalments in November 2025 and November 2026. Those payments are now waived under the condition that the carrier invests USD16.1 million in items such as additional wheelchairs, wheelchair lifts, and mobile devices and software enhancements for its staff to improve service. The government also credited the airline with USD700,000 in investments made in 2024 and 2025.

The waiver of the fine follows a DOT decision which similarly waived a fine on Southwest Airlines in return for the airline investing the equivalent of the penalty into service improvement.