Southwest Airlines Fined $140M By DOT Over 2022 Flight Disruptions

The U.S. Transportation Department imposed a record $140 million fine on Southwest Airlines on Dec. 18 for widespread flight disruptions.

NBC News reports the U.S. Transportation Department imposed a record $140 million fine on Southwest Airlines on Dec. 18 for widespread flight disruptions during the 2022 holiday season, affecting nearly 17,000 flights. The penalty, 30 times larger than any previous consumer protection violation fine, will primarily be directed toward compensating affected Southwest passengers for future delays or cancellations. This is in addition to the $600 million in refunds and reimbursements already provided by the airline.

During the almost yearlong investigation, the Transportation Department identified numerous violations of consumer protection laws by Southwest Airlines, including inadequate customer service through the call center, delayed flight status notifications, and failure to issue refunds promptly. Transportation Secretary Pete Buttigieg emphasized the significance of the penalty, stating, “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.”

Southwest responded with a commitment to delivering the highest standard of customer service and expressed satisfaction with the settlement, which includes a new policy to compensate customers during significant delays and cancellations.

The holiday disruptions last year left more than 2 million passengers stranded during Christmas and into the New Year, resulting in over 16,900 canceled or delayed flights, according to the outlet. Southwest attributed the chaos to bad weather causing daily flight schedule changes at an unprecedented volume, acknowledging its performance as “unacceptable.”

Passengers affected by the disruptions voiced their dissatisfaction, with some vowing never to fly Southwest again. The airline reported losses of $220 million in that quarter, and a top executive apologized for the disaster at a Senate hearing in February.

The total amount Southwest will pay, exceeding $750 million, will predominantly go toward passenger refunds, reimbursements, Rapid Rewards, or future compensation. The Transportation Department also directed the airline to set aside $90 million in vouchers for future travelers impacted by delays and cancellations.

“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.”

Southwest has since implemented measures to enhance the customer experience, including digital bag tracking, flight credits that don’t expire, refund options for canceled flights, increased rebooking choices, and improved weather notifications.

The Transportation Department also disclosed that it was investigating whether Southwest engaged in unrealistic flight scheduling, but as part of the settlement, it closed that investigation without a finding, emphasizing its goal to swiftly provide relief for the public.