Delta to Pay US$79 Million Over 2020 Los Angeles Fuel Spill

Delta Air Lines has agreed to a US$78.7 million settlement in a class-action lawsuit stemming from a 2020 incident in which a jet released thousands of gallons of fuel over Los Angeles residential areas, schools, and playgrounds. The settlement, filed this week in federal court, is pending judicial approval.

The case involves Delta Flight 89, a Shanghai-bound Boeing 777 that experienced engine problems shortly after departing Los Angeles International Airport in January 2020. The pilots opted to return to LAX but faced an overweight aircraft due to the fuel required for the long-haul flight. In response, the crew released approximately 15,000 gallons of jet fuel over populated areas in Los Angeles and Orange County.

According to court filings, the fuel affected tens of thousands of properties, including an elementary school where 20 children and 11 adults received treatment for minor skin and eye irritation. Overall, more than 50 individuals required medical attention. Residents argued the fuel could have been released over the Pacific Ocean or at higher altitude to allow it to dissipate safely.

“The pilots did exactly what federal regulations and their FAA-approved training required to respond to that in-flight emergency and ensure the safety of passengers, crew, and people on the ground,” Delta stated, denying wrongdoing. The airline cited a Federal Aviation Administration investigation that cleared the pilots of misconduct.

The settlement allocates roughly one-third of the US$78.75 million for attorneys’ fees and costs, with the remainder distributed among approximately 38,000 property owners and residents. If all affected parties submit claims, average payouts would be US$889 per household and US$104 per individual.

A central issue in the litigation was whether the fuel caused lasting damage. Laboratory testing indicated no petroleum hydrocarbons remained in the soil after a week, and home sale data showed no decline in property values, weakening claims of long-term contamination. Nonetheless, plaintiffs’ attorneys emphasized the disruption to families’ lives. “We are especially pleased to obtain this result for residents of the southeast LA communities, comprised of hard-working families who asked only for respect and just treatment and rightly deserve this result,” said Filippo Marchino, resident representative, X-Law Group.

Delta’s statement in the settlement filing reiterated that the company decided to resolve the litigation “without any admission of liability” to manage uncertainties, avoid significant legal expenses, and eliminate the distraction caused by the prolonged court process.

The settlement consolidates multiple lawsuits, including claims from local teachers, marking the first substantial recovery for affected communities more than five years after the fuel release. The final court approval hearing is proposed for March 2026.