Southwest Airlines slapped with record $140 million fine over Christmas flight debacle
Southwest's settlement for last Christmas' meltdown
Atlanta’s second largest airline now must pay a massive fine after last Christmas’ meltdown. Southwest cancelled nearly 17,000 flights nationwide after a winter storm disrupted the airline’s operation for days. Monday, after a lengthy investigation, the government announced Southwest will pay up big time for their failure to protect customers.
ATLANTA - Atlanta’s second-largest airline now has to pay a massive fine after last Christmas’ meltdown.
In 2022, Southwest canceled nearly 17,000 flights nationwide after a winter storm disrupted the airline’s operation for days. On Monday, after an investigation, the government announced Southwest will pay up big time for their failure to protect customers.
The flight cancelations are still on the minds of some travelers.
"It was just a debacle, unheard of," said Michelle Williams.
Williams was one of the unlucky passengers impacted by the cancelations last year. First, weather and then technology caused the airline to grind to a halt for days.
"Very frustrating, not only are you looking to get out, and we understand the weather, but it was more than just the weather," Williams said. "It was actually the system with Southwest that just crashed."
On Monday, the Transportation Department took action against Southwest.
"As part of this penalty, $140 million in value, we're requiring that Southwest pay a $35 million fine," said Pete Buttigieg, the U.S. Transportation Secretary. "We thought that level was very important to send a signal to industry."
The agency says it found Southwest violated consumer protection laws. This civil action is 30 times larger than previous penalties issued by the DOT. Another aspect of the action means future Southwest fliers will get a $75 flight credit when there is a long delay or cancelation that is within the airline's control.
"They are really dictating to Southwest that they need to set aside $90 million in a reserve fund to basically compensate passengers for future delays and cancelations," said Laurie Garrow, an aviation expert and Professor at Georgia Tech.
In a statement, Southwest says it has learned from last year and has made technology upgrades. While Sabrina Barnes’ daughter missed Christmas last year, she is flying the airline this year because of how it handled the situation.
"If they hadn't compensated her and made it right, I would not be flying, but they did, so I'm willing to fly with them again," she said.
The DOT penalty is in addition to the more than $600 million in refunds and reimbursements Southwest has given passengers.