American Airlines has reached a settlement with the U.S. federal government over liability and cross-claims linked to the January 2025 midair collision involving American Eagle Flight 5342 near Reagan National Airport in Washington, D.C. The agreement resolves one major legal dispute in the crash litigation, including claims by American Airlines and PSA Airlines seeking cost-sharing or indemnification for any future damages or judgments.
The terms of the settlement were not disclosed. The case had raised the question of whether the government would be required to share financial responsibility for claims arising from the crash, which killed 67 people and triggered a broader review of aviation oversight around Reagan National Airport.
The collision has remained a significant liability issue for American and its regional affiliate PSA Airlines as the underlying lawsuits move forward. The settlement removes one layer of uncertainty, but it does not end the broader litigation tied to the accident.