The US fined Lufthansa a record $4 million for discrimination after it stopped 128 Jewish passengers from boarding a connecting flight

• Lufthansa was fined $4 million for discrimination over a 2022 incident involving over 100 Jewish passengers.
• 128 were denied boarding to a connecting flight after some were said to have misbehaved.

Lufthansa has been fined $4 million by the Department of Transportation after it was found to have discriminated against 128 Jewish passengers.

According to the DoT, the German flag carrier's fine is the largest issued against an airline for civil-rights discrimination.

Tuesday's fine relates to a May 2022 incident involving a journey from New York to Budapest, where there was an annual memorial event to honor an Orthodox rabbi.

After some people were said to have misbehaved on the first flight to Frankfurt, Lufthansa prevented 128 Jewish passengers — most of whom wore garments typically worn by Orthodox Jewish men — from boarding their connecting flight to Budapest, the DoT said.

According to the consent order, Lufthansa said as many as 60 passengers disregarded instructions to wear face masks, as was mandated under German law at the time due to the COVID-19 pandemic.

However, the Transportation Department found that Lufthansa failed to show its crew "took any action to document the identities of specific passengers who engaged in misconduct."

Yitzy Schmidt, a passenger on the flight, previously told Business Insider: "I was guilty by association, and that association is being an Orthodox Jew."

Lufthansa said that it regrets denying boarding to the passengers, but said it was due to "inaccurate communications, misinterpretations, and misjudgments" rather than discrimination, according to the DoT's statement.

The airline agreed to pay the $4 million fine, half of which consists of compensation it has already paid to the affected passengers.

In a statement shared with BI, Lufthansa said it has "fully cooperated" with the DoT's review.

The airline also said it is "a respected corporate citizen, playing a meaningful role in shaping a more inclusive society" and pointed to its partnership with the American Jewish Committee and being the first airline to adopt the International Holocaust Remembrance Alliance's working definition of antisemitism.

"Lufthansa will continue to foster a thoughtful dialogue with Jewish communities and organizations around the world," it added.

Transportation Secretary Pete Buttigieg said, "No one should face discrimination when they travel, and today's action sends a clear message to the airline industry that we are prepared to investigate and take action whenever passengers' civil rights are violated."