The Department of Transportation fined Southwest Airlines $140 million for major flight disruptions during the 2022 holiday season and resulted in nearly 17,000 significantly delayed or canceled flights, the DOT announced Monday.

The civil penalty — which the DOT said is 30 times larger than any prior department penalty for consumer protection violations — will mostly go toward paying future Southwest passengers affected by major delays or cancellations caused by the airline, the Transportation Department said in a release. It is in addition to $600 million in refunds and reimbursements Southwest already gave passengers.

In its nearly yearlong investigation, the DOT found Southwest violated a number of consumer protection laws by failing to provide proper customer service (namely through the call center), prompt flight status notifications and refunds in a prompt or proper manner, the DOT said in its release.

“Today’s action sets a new precedent and sends a clear message: if airlines fail their passengers, we will use the full extent of our authority to hold them accountable,” Transportation Secretary Pete Buttigieg said in a written statement. “Taking care of passengers is not just the right thing to do — it’s required, and this penalty should put all airlines on notice to take every step possible to ensure that a meltdown like this never happens again.” 

Southwest said in a statement that it “is committed to delivering the highest standard of excellence in Customer Service” and that it is “pleased” to have reached this settlement “which includes a new, industry-leading policy to compensate Customers during significant delays and cancellations.”

The holiday meltdown stranded over 2 million passengers during Christmas last year and into the New Year, and resulted in more than 16,900 canceled or delayed flights.

Last December, Southwest said the airline was fully staffed for the holiday travel season, but bad weather caused daily flight schedule changes “at a volume and magnitude that still has the tools our teams use to recover the airline operating at capacity.” It called its own performance “unacceptable.”

A Southwest spokesman said at the time that cancellations piled up amid winter storms across the country, leaving flight crews and planes out of place.

In the aftermath, some passengers vowed to never fly Southwest again and the airline reported $220 million in losses that quarter. In February, a top Southwest executive apologized for the disaster at a Senate hearing.

In total, the airline will pay more than $750 million, with most funds going toward passenger refunds, reimbursements, Rapid Rewards or future compensation, the DOT said.

The DOT said it also instructed the airline to put aside a $90 million in vouchers for future travelers who are affected by delays and cancellations.

Southwest said Monday that it has worked to improve the customer experience with digital bag tracking, flight credits that don’t expire, the ability to request a refund if a traveler chooses not to continue a trip when Southwest has canceled a flight, more rebooking options and better weather notifications.

Southwest customers are also entitled to some reimbursements for meals, hotels and ground transportation when faced with major controllable delays or cancellations, the DOT said, because of changes the airline made in September 2022.

“We have spent the past year acutely focused on efforts to enhance the Customer Experience with significant investments and initiatives that accelerate operational resiliency, enhance cross-team collaboration and bolster overall preparedness for winter operations,” Bob Jordan, Southwest president and CEO, said in a statement. “Our commitment to Customers has been central to our success across our 52-year history and has helped us become one of the world’s most admired and trusted airlines.” 

The DOT said in January that it was also investigating whether Southwest engaged in unrealistic scheduling of flights. As part of the $140 million settlement, the department said Monday it was closing that investigation “without making a finding as its goal is to obtain quick relief for the public.”

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like
Mangione back in court after hearing earlier this month shrouded in secrecy

Luigi Mangione Returns to Court After Secretive Earlier Hearing: What We Know So Far

Luigi Mangione is due back in a New York courtroom Tuesday morning…
5 chilling details from the alleged White House attack plot tied to UFC event

5 Disturbing Details in the Alleged White House Attack Plot Linked to a UFC Event

FBI foils alleged drone terror plot targeting White House UFC event The…
A look back at Barack Obama's rise from community organizer to first Black US president ahead of Chicago Obama Center opening

Barack Obama’s Journey From Community Organizer to America’s First Black President, as Chicago’s Obama Center Nears Opening

CHICAGO (WLS) — Barack Obama’s rise from little-known politician to president of…
The Grammys add five new categories, adjust rules for 2027 Grammy Awards

2027 Grammys Add 5 New Categories and Update Key Award Rules

The Grammy Awards are expanding again, adding five new categories and revising…
Ridglan Farms update: Wisconsin beagle research facility that drew protests is closing as Big Dog Ranch Rescue group takes in dogs

Wisconsin Beagle Research Facility Ridglan Farms to Close as Big Dog Ranch Rescue Takes In Dogs

A controversial beagle breeding and research facility in Wisconsin is shutting down,…
Couple recalls narrow escape from Merrillville, Indiana tornado as severe weather tomorrow includes tornado risk, strong storms

Couple Recalls Close Call in Merrillville Tornado as Tomorrow’s Severe Weather Brings New Tornado Threat

MERRILLVILLE, Ind. (WLS) — A week after a tornado ripped through Merrillville,…
SpaceX to buy AI coding assistant Cursor for $60 billion

SpaceX Eyes $60 Billion Acquisition of AI Coding Assistant Cursor in Landmark Tech Deal

Days after a blockbuster initial public offering, SpaceX announced Tuesday that it…
Uptown shooting: Chicago police shooting near Clark and Argyle injures suspect in fatal Ravenswood shooting of condo board pres.

Uptown Police Shooting Near Clark & Argyle: Suspect in Fatal Ravenswood Condo Board President Murder Injured

CHICAGO (WLS) — A condominium board president was shot and killed in…
Chicago shootings this weekend: At least 10 shot, 2 fatally, in gun violence across city, police department says

Arlington Heights Police Search for Suspect in Teen Sexual Assault at Eastman Parking Garage

ARLINGTON HEIGHTS, Ill. (WLS) — Police in north suburban Arlington Heights are…
FDNY deploys 140+ personnel to JFK after Delta flight reported with flat tires on approach to landing

FDNY Sends More Than 140 Personnel to JFK After Delta Flight Reports Flat Tires During Landing Approach

A Delta Air Lines flight arriving at New York’s John F. Kennedy…
California co-eds killed after being swept out to sea by dangerous waves while sleeping

California Co-eds Swept Out to Sea by Dangerous Waves While Sleeping, Authorities Say

Two California college students died after strong surf and rising tides swept…
Barry Moore Wins Runoff for Tuberville's Senate Seat, Despite a 'Dewey Defeats Truman' Snafu

Barry Moore Secures Tuberville’s Senate Seat in Runoff, Despite Election-Night Reporting Mix-Up

Alabama Republicans headed into a runoff for the U.S. Senate between Rep.…