DALLAS— American Airlines (AA) has avoided paying the remaining USD 16.1 million of a record-setting federal penalty after the U.S. Department of Transportation approved a revised compliance plan.
The decision, announced this week, allows the carrier to redirect the unpaid portion of its fine toward equipment to improve its wheelchair and mobility device handling across major airports.
DOT Compliance Decision
The DOT amended the original consent order to ensure that funds withheld from the Treasury would instead be used directly to improve wheelchair services.
Officials said the updated structure better supports disabled travelers by requiring the airline to invest in targeted technology and ground-handling tools. Under the revised agreement, American Airlines will not owe any additional money to the federal government.
The department emphasized that the new approach encourages practical improvements rather than relying solely on financial penalties.
The airline has already paid USD 8.3 million to the government and received credits for previous accessibility investments. DOT officials stated that the new terms still hold the company accountable while delivering more tangible benefits to passengers who depend on wheelchairs.
The move follows an extensive federal investigation into the airline’s treatment of passengers with disabilities and comes nearly a year after the government imposed a USD 50 million civil penalty.
Equipment Investment Plan
American Airlines has been issued a detailed USD 16.1 million spending requirement that functions as a mandatory “shopping list.”
The largest portion—USD 10.6 million—will fund mobile technology upgrades and software tools that allow the airline to track wheelchairs from check-in to arrival.
These tools aim to reduce mishandling incidents by improving data accuracy and ensuring better coordination between ground teams.
A further USD 5.3 million will go toward purchasing 119 specialized lifts. These devices will be deployed in Philadelphia, Miami, and Chicago O’Hare to safely transport mobility devices between the airbridge and the tarmac.
Another USD 300,000 has been allocated for 23 wheelchair movers designed to help employees manage heavy electric wheelchairs.
Implementation will not be immediate, as the tracking software does not need to be fully operational until May 2027.
The remaining equipment may take an additional year to arrive. DOT also credited the airline with USD 700,000 for voluntary compensation already paid to passengers whose wheelchairs were mishandled over the past year.
Background and Handling Data
The fines stem from widespread complaints received between 2019 and 2023, including viral footage from Miami (MIA) that showed baggage handlers mishandling a wheelchair on a ramp.
The investigation also reviewed lawsuits and customer reports involving lost or severely damaged mobility devices. These incidents prompted the DOT to take unprecedented enforcement action.
Although the airline transports more than 146,000 mobility devices annually and provides assistance to around eight million passengers, its handling record still lags behind key competitors.
The July 2025 Air Travel Consumer Report showed that American’s wheelchair mishandling rate stood at 1.39 per 100 devices, compared with 1.26 for United and 0.47 for Delta. While the airline has shown incremental improvement since 2024, regulators note that significant progress is still required.
Bottom Line
American Airlines will no longer pay the remaining USD 16.1 million of its federal penalty, but it must invest the full amount in technology and equipment to improve wheelchair handling.
The DOT’s revised plan aims to deliver measurable upgrades for disabled passengers, though implementation timelines span several years.
Whether these investments will significantly reduce mishandling incidents remains a question that only future performance data can answer.
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