DOT hits Southwest Airlines with hefty fine following 2022 holiday meltdown

WASHINGTON, D.C. — Southwest Airlines face a $140 million fine from the federal government. This stems from last year’s meltdown that led to nearly 17,000 cancelled flights and two million passengers stranded around Christmas.

The U.S. Department of Transportation said Southwest Airlines violated several consumer protection laws last December. According to the DOT, this penalty is 30 times larger than any previous one for similar violations.

In a release, the agency outlined three major missteps. The DOT investigation found the airline didn’t provide adequate customer service for stranded passengers, didn’t notify them of flight changes and didn’t provide prompt refunds afterward.

Since then, Southwest has provided more than $600 million in refunds and reimbursements. The company said it also gave airline credits worth $300 to all customers impacted by the disruption.

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In a new statement, Southwest said it has taken steps to improve customer care and boost operational resiliency.

During an interview last week with the Washington News Bureau, Transportation Secretary Pete Buttigieg said he wanted to make sure Southwest passengers were taken care of as part of this investigation.

“We send a signal to the entire industry about the need to prevent these issues from happening. That means realistic schedules in the first place. Don’t sell a ticket that you know, you’re not going to be able to serve and it means making sure there’s adequate customer service when you do have a problem,” said Secretary Buttigieg.

As part of this fine, Southwest will also set aside $90 million in vouchers for future passengers affected by significant cancellations and delays within the airline’s control. This new policy will take effect in late April.

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