DOT Fines American Airlines

The U.S. Department of Transportation fined American Airlines $60,000 for violating the full-fare advertising rule after AA reps told consumers that surcharges charged by the company were government-imposed taxes. Under law, the first price quoted for air transportation must state the entire price of the booking, including all taxes, fees and surcharges. The DOT found that on numerous occassions AA representatives told consumers that fees and surcharges were collectively “taxes.” In reality, a significant portion of the charges were imposed by the airline.