The Department of Transportation announced today they have hit Southwest Airlines with the largest consumer protection penalty in the agency’s history. The fine was a response for the days-long meltdown that stranded thousands of travelers and crew members over the 2022 Christmas holiday. Via Politico:
DOT’s $140 million fine — which is “30 times larger than any previous penalty for consumer protection violations” — stems from an investigation of an episode where the Texas-based airline ultimately canceled 16,900 flights and stranded more than two million passengers. The probe established that the airline failed to provide adequate customer service assistance, flight status notifications and refunds in a prompt and proper manner.
“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,” Transportation Secretary Pete Buttigieg said in a statement, adding that the agency’s decision “sets a new precedent.”
As part of a consent order, Southwest is required to pay $35 million to the U.S. Treasury, the agency said. It will also set up a $90 million compensation system for future vouchers that would be issued to Southwest customers who experience a “controllable” cancellation or delay. Passengers who arrive at their destination more than three hours after their original scheduled arrival time will also be entitled to a transferable $75 voucher. That voucher is in addition to rebooking, hotel and food provided during a delay.
