Record Penalty Originally Imposed
Southwest Airlines will not have to pay the final $11 million installment of a $140 million civil penalty imposed over its 2022 holiday travel meltdown. The Biden administration’s Department of Transportation initially issued the record fine—the largest in U.S. airline history—after Southwest canceled over 16,900 flights during a winter storm, affecting more than 2 million passengers.
Credit for Operational Improvements
Instead of paying, Southwest receives an $11 million credit for investing $112.4 million in its Network Operations Control, which improved on-time performance and flight completion rates. The DOT said the waiver encourages airlines to invest in operational resilience that directly benefits travelers.
Airline Response
Southwest expressed gratitude to the DOT for recognizing its operational turnaround. The airline highlighted that its recent improvements have led to industry-leading on-time performance and reduced cancellations.
Background
The original penalty required Southwest to upgrade technology, improve reliability, and compensate passengers for future delays. The airline also paid $600 million in refunds and reimbursements to customers as part of the settlement.
For more on this story, stay tuned to Que Onda Magazine.