NEW YORK (Reuters) - American Airlines, the No. 1 U.S. air carrier, was accused of safety violations in a civil lawsuit seeking over $1 million in fines announced on Thursday by federal prosecutors in Brooklyn.

American, owned by AMR Corp., denied the accusation in the lawsuit filed on September 6 in U.S. District Court in Brooklyn, saying that it had never compromised passengers' safety.

The lawsuit stems from a Federal Aviation Administration inspector's claim that he observed fuel leaking from the wing of a McDonnell Douglas MD-82 aircraft during a flight from Orlando, Florida to LaGuardia Airport in New York City.

The inspector, who was on the flight in November 2003, reported that he had seen the leak and pointed it out to the flight's crew, the Brooklyn U.S. Attorney's office said in a statement.

But the Fort Worth, Texas-based airline took no action to remedy the problem and failed to record the inspector's report in maintenance logs as required by FAA regulations, according to the complaint.

The plane went on to fly another 53 commercial flights until a regularly scheduled maintenance check, when the leak was discovered in the same location originally pinpointed by the inspector, prosecutors said.

But American disputed the complaint's version of events, saying that a qualified mechanic was dispatched to check on the wing immediately after the plane landed, and found no evidence of a leak after a thorough check.

"In accordance with our FAA approved manuals and procedures, the aircraft was subsequently dispatched," spokesman Tim Wagner said. "At no time was the safety of our passengers placed at risk."

In additional to the fines, prosecutors said in a statement said they were seeking "injunctive relief sufficient to assure that American Airlines complies with the applicable standards of safety, maintenance and record-keeping."