U.S. DOT fines Southwest Airlines $140M for 2022 holiday meltdown

The U.S. Department of Transportation or DOT announced a $140M civil penalty against Southwest Airlines for numerous violations of consumer protection laws during and after the operational failures that cancelled 16,900 flights and stranded over two million passengers over the 2022 Christmas holiday and into the New Year. This penalty is 30 times larger than any previous DOT penalty for consumer protection violations. The majority of the penalty will go towards compensating future Southwest passengers affected by cancellations or significant delays caused by the airline. The penalty is in addition to the more than $600M in refunds and reimbursements that DOT already ensured Southwest provide passengers who faced travel disruptions during the operational meltdown. In September 2022, at the urging of Secretary Buttigieg, Southwest Airlines made significant changes to its customer service plan that entitled passengers to reimbursements for expenses such as meals, hotels, and ground transportation if a flight is significantly delayed or cancelled due to an airline issue. As a result of DOT’s actions, Southwest was legally required to adhere to those commitments during the 2022 holiday travel meltdown. In total, Southwest will pay over $750M for the holiday meltdown – with the vast majority going to passengers for refunds, reimbursements, rapid rewards, or future compensation – due to DOT’s actions. https://www.transportation.gov/briefing-room/dot-penalizes-southwest-airlines-140-million-2022-holiday-meltdown