The U.S. Department of Transportation has fined Alaska Airlines, American Airlines, Southwest and United Airlines for providing inaccurate or incomplete information to passengers about compensation and baggage liability. The violations involved rules covering compensation for passengers who are involuntarily denied boarding (bumped), and the requirements for notice about lost, damaged or delayed baggage.
United Airlines was fined $35,000. Alaska Airlines, Southwest and American Airlines each received $40,000 fines. In addition to monetary penalties, the Department ordered the carriers to cease and desist from similar practices and to comply with federal disclosure requirements going forward.
Federal regulations require airlines to tell eligible passengers the precise compensation they may receive if they are involuntarily bumped from a flight. Carriers must make all terms, conditions and limitations about such compensation available in writing, including any priority rules that affect who qualifies and how much they will receive. This information must be provided on request at airport ticket counters and in boarding areas.
Airlines also must provide clear notice about baggage liability limits. The law prohibits limiting liability for lost, damaged or delayed baggage to less than $3,500, and passengers should be informed about any liability caps and applicable conditions.
Following inspections at airports nationwide, Department of Transportation investigators found that these four carriers either failed to provide the required information or provided disclosures that were incomplete, outdated or inaccurate. As a result, consumers may not have been fully informed of their rights and potential compensation in situations involving denied boarding or baggage issues.
“We are committed to ensuring that air travelers know the rules and have accurate information about compensation when they are bumped from flights and for lost, damaged or delayed baggage,” said Anthony Foxx, U.S. Secretary of Transportation.