Three black men were removed from an American Airlines flight in January after a complaint about their body odour, sparking accusations of racial discrimination.
The men, who were not seated together, sued the airline in May, alleging that they were singled out because of their race.
American Airlines CEO Robert Isom apologized for the incident, acknowledging that the airline fell short of its customer commitments and failed to uphold its values.
The airline is taking steps to prevent future discrimination, including establishing an advisory group to address the concerns of black passengers.