Key insights
- The FAA proposed a $255,000 fine against American Airlines for allegedly allowing 12 flight attendants who failed drug and alcohol tests to resume safety-sensitive duties without completing required follow-up testing between May 2019 and December 2023. This regulatory scrutiny could negatively impact investor confidence, though the financial impact is limited.
WASHINGTON, April 8 (Reuters) - The U.S. Federal Aviation Administration said on Wednesday it was proposing a $255,000 civil penalty against American Airlines for allegedly violating drug and alcohol regulations.
The FAA said between May 2019 and December 2023, the airline allowed 12 flight attendants who had tested positive on drug and alcohol tests to resume performing safety-sensitive duties without completing all the required follow-up testing.
The company has 30 days after receiving the FAA's enforcement letter to respond to the agency, the administration said in a statement.
(Reporting by Kanishka Singh and Jasper WardEditing by David Ljunggren)