Home » US business news » Southwest Airlines fined a record $140 million over 2022 holiday travel chaos

Southwest Airlines fined a record $140 million over 2022 holiday travel chaos

By Nithya Bose in US business news, posted December 19, 2023

Southwest Airlines has been hit with a $140 million fine for violating consumer protection laws during the tumultuous holiday period of the previous year.

This penalty is a record, being 30 times larger than any previously issued by the US Department of Transportation (DOT) for consumer protection violations.

The airline left millions of passengers stranded during the holiday while battling with severe weather.

The DOT's probe found Southwest failed to provide adequate customer assistance and neglected to notify passengers of flight changes promptly.

The airline's call center was reportedly overwhelmed during the chaos.

It resulted in long queues and busy signals for customers attempting to reach customer service.

Southwest must make a $35 million cash payment to the government over three years as part of the fine.

The airline has been instructed to establish a fund to compensate future travelers affected by flight disruptions within its control.

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Southwest will receive a $33 million credit for providing frequent flyer miles to affected passengers.

Transportation Secretary Pete Buttigieg said: “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 Airlines canceled nearly 17,000 flights during the year-end holiday period last year, costing the company over $1 billion.

The chaos resulted in stranded passengers and significant financial losses.

It led the airline to pay over $600 million in reimbursements and refunds to customers alone.

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Problems "will never happen again"

Southwest CEO Bob Jordan assured the public the issues leading to the previous year's holiday meltdown “will never happen again.”

The airline has implemented various improvements, including purchasing additional de-icing equipment and upgrading crew scheduling technology.

Jordan said: “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.”

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