Southwest will pay a $140 million fine for its meltdown during the 2022 holidays

WASHINGTON — Southwest Airways continues to be paying for its meltdown through the 2022 holidays that stranded hundreds of thousands of vacationers — and the tab is rising.

The U.S. Transportation Division has ordered Southwest to pay a $140 million civil penalty, a part of a broader consent order after the airline’s operational failures a 12 months in the past.

That penalty is by far the biggest the DOT has ever levied for shopper safety violations, in response to an announcement from the division.

“Immediately’s motion units a brand new precedent and sends a transparent message: if airways fail their passengers, we are going to use the total extent of our authority to carry them accountable,” Transportation Secretary Pete Buttigieg stated in an announcement saying Monday’s order.

A serious winter storm final December prompted journey disruptions throughout the nation as airways canceled 1000’s of flights. However whereas different airways recovered comparatively rapidly, Southwest fell aside. The airline in the end canceled 16,900 flights, stranding greater than 2 million passengers.

For the reason that disruption, Southwest says it has taken steps to enhance its operational resiliency and buyer care.

“We now have spent the previous 12 months acutely targeted on efforts to reinforce the Buyer Expertise with vital investments and initiatives that speed up operational resiliency,” stated Bob Jordan, Southwest Airways President & CEO in an announcement. “Our dedication to Clients has been central to our success throughout our 52-year historical past and has helped us change into one of many world’s most admired and trusted airways.”

Below the settlement, Dallas-based Southwest is required to ascertain a $90 million compensation system for future passengers affected by vital delays and cancellations, which counts as a part of the $140 million penalty.

The airline has already paid out greater than $600 million in refunds and reimbursements to vacationers who confronted disruptions. In whole, the airline pays out over $750 million for the vacation meltdown, DOT stated.

“Caring for passengers is not only the suitable factor to do — it is required, and this penalty ought to put all airways on discover to take each step attainable to make sure that a meltdown like this by no means occurs once more,” Buttigieg stated.