Southwest Airlines Slapped with $140M Fine for Holiday Travel Chaos

The Transportation Department has imposed a record-breaking $140 million civil penalty on Southwest Airlines for its 2022 travel meltdown, which resulted in the cancellation of 16,900 flights and stranded over two million passengers. The penalty is the largest in the agency's history and is 30 times larger than any previous penalty for consumer protection violations. The investigation found that Southwest failed to provide adequate customer service assistance, flight status notifications, and refunds in a timely manner. As part of a consent order, Southwest will pay $35 million to the U.S. Treasury and establish a $90 million compensation system for future vouchers. The airline will also provide a $75 voucher to passengers who experience significant delays. In exchange, the penalty will be reduced by $72 million.