CHICAGO - United Airlines and the passenger who was dragged from a Chicago flight earlier this month have reached a settlement for an undisclosed sum, they said on Thursday, in the carrier's latest step to contain damage from an incident that sparked international outrage.

Viral videos of Doctor David Dao being dragged down the aisle of a United jet and Chief Executive Oscar Munoz's handling of the incident touched off a public outcry, prompted calls from congressmen for new industry regulation and led United's board of directors to reverse an agreement to make Munoz company chairman in 2018.

United said earlier on Thursday that it would offer passengers who give up their seats up to $10,000, reduce overbooking of flights and no longer call on law enforcement officers to deny ticketed passengers their seats.