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United Blunder Prompts Airlines to Throw Cash at Their Problems

  • Dragged passenger’s deal follows boost to overbooking payouts
  • American grants pay increase to ‘rebuild trust’ with employees

For U.S. airlines, doing right this week meant plunking down cold, hard cash.

United reached a settlement with a passenger who was dragged off a plane and bloodied. It also said it would pay as much as $10,000 to passengers who agree to give up their spots, following a similar move by Delta. Southwest said it would stop overbooking flights. And American added almost $1 billion in costs to “rebuild trust” with employees.