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

WASHINGTON — Southwest Airways remains to be paying for its meltdown in the course of 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 client safety violations, in accordance with 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 mentioned in an announcement saying Monday’s order.

A serious winter storm final December brought about journey disruptions throughout the nation as airways canceled hundreds of flights. However whereas different airways recovered comparatively shortly, Southwest fell aside. The airline finally canceled 16,900 flights, stranding greater than 2 million passengers.

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

“We’ve got spent the previous 12 months acutely centered on efforts to reinforce the Buyer Expertise with vital investments and initiatives that speed up operational resiliency,” mentioned 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 grow to be 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 complete, the airline pays out over $750 million for the vacation meltdown, DOT mentioned.

“Taking good care of passengers isn’t just the correct factor to do — it is required, and this penalty ought to put all airways on discover to take each step doable to make sure that a meltdown like this by no means occurs once more,” Buttigieg mentioned.