U.S. Department of Transportation Fines Southwest a Record $140 Million for 2022 Operational Meltdown
The $140 million is 30 times larger than any airline penalty issued in the DOT’s history.
(Washington, D.C.) The U.S. Department of Transportation (DOT) announced a $140 million penalty – 30 times larger than any airline penalty in the department’s history – against Southwest Airlines for “failing passengers during its 2022 holiday meltdown,” according to the department’s Twitter account, @USDOT.
Photo courtesy of Southwest Airlines.
Southwest’s operational failures during the 2022 Christmas-New Year holiday season cancelled 16,900 flights and stranded over two million passengers, according to a press release from the DOT.
As part of the penalty, Southwest will be required to compensate future passengers whose flights are significantly delayed or cancelled with $75 vouchers in addition to being required to pay for flight rebooking, hotels and food during the delay.
The penalty comes in addition to more than $600 million in refunds and reimbursements that the DOT already ensured Southwest passengers who faced travel disruptions be provided with. In total, Southwest will pay more than $750 million for the holiday meltdown due to the DOT’s actions.
“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,” said U.S. Transportation Secretary Pete Buttigieg in the DOT’s press release. “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.”
A press release from the Southwest noted that since the disruption, Southwest has taken many steps to boost Customer care and operational resiliency.
“Southwest appreciates acknowledgement that it moved expeditiously to care for Customers, learned from the event, and can now shift its entire focus to the future,” read the press release.
“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 Airlines President & Chief Executive Officer said. "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."
