The US Department of Transportation has imposed a record-breaking $4 million fine on Lufthansa, following an incident where Jewish passengers were barred from taking a connecting flight in May 2022. The DOT stated that Lufthansa's actions constituted discrimination as every Jewish passenger on the Frankfurt-Budapest flight was affected, despite not all being associated or even acquainted. The incident arose when the captain reported that some passengers did not comply with mask mandates and behavior protocols during the first leg of the journey from New York. Subsequently, a blanket hold was placed on over 100 tickets, preventing those passengers, identified by their distinct Orthodox attire, from boarding their connecting flights.

The majority of affected passengers were rebooked on subsequent flights, but the DOT stressed that even compliant travelers were indiscriminately penalized based on their appearance and presumed association. This action breached civil rights regulations, marking the largest penalty of its kind against an airline.

Lufthansa, while agreeing to the penalty to avoid further litigation, maintains that their actions were not discriminatory. The airline attributes the problem to flawed communication and highlighted its existing efforts in staff training for diversity and inclusion. The company emphasized its dedication to tolerance and acceptance in their operations.

US Transportation Secretary Pete Buttigieg condemned the discriminatory treatment, reinforcing that no passenger should face bias based on appearance or religious attire. The DOT's investigation revealed that crew members could not pinpoint specific individuals who did not adhere to mask regulations, leading to a group-wide punitive action. The conclusion was drawn after passengers interviewed had not observed any misconduct.

The settlement requires Lufthansa to pay $2 million outright, with an additional $2 million recognized through previous compensations made to affected travelers. This incident and the subsequent penalty underline the US's vigorous stance on upholding civil rights within the air travel industry.