Southwest Airlines has been charged a historic $140 million fine for its 2022 holiday travel meltdown, marking a penalty 30 times larger than any previous airline fine.
According to reports, the US Department of Transportation has mandated the airlines to provide travelers with a $75 credit if their arrival is delayed more than 3 hours when it’s the airline’s fault, including mechanical issues.
“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,” Transportation Secretary Pete Buttigieg said.
The $140 million fine, along with approximately $600 million in refunds and reimbursements, will predominantly go towards compensating customers affected by future Southwest flight cancellations and delays, as stated by the DOT.
During the 2022 holiday season, Southwest Airlines canceled over 16,900 flights, leaving over 2 million passengers stranded.
The airline said it had “learned from the event” and made new investments to improve customer service and “our resiliency.”
Southwest said in a statement: “We’re pleased to have reached this consumer-friendly settlement, which includes a new, industry-leading policy to compensate Customers during significant delays and cancellations.”
“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,” said Buttigieg.
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