Southwest Airlines faces a historic $140 million fine from the U.S. Department of Transportation (DOT) due to its operational breakdown during the 2022 holiday travel period. This penalty, unprecedented in size for an airline, comes as a consequence of over 16,900 flight cancellations during a massive winter storm, affecting over 2 million passengers.
Transportation Secretary Pete Buttigieg emphasised that this action sets a precedent, reinforcing accountability for airlines that fail their passengers. The fine, in addition to previous refunds totalling approximately $600 million, will primarily compensate future affected Southwest customers.
The DOT’s investigation highlighted violations of consumer protection laws, particularly regarding customer service, flight status notifications, and prompt refunds. Southwest is now mandated to issue a $75 flight credit to passengers facing over 3-hour delays due to airline faults, with $90 million in vouchers set aside for this purpose.
Southwest Airlines responded, expressing satisfaction with the settlement, hailing it as a consumer-friendly resolution and emphasising a new policy aimed at compensating customers during significant disruptions.
Buttigieg reiterated the necessity for airlines to prioritise passenger care to prevent such incidents in the future.