US cancels $11 million Southwest Airlines fine for 2022 holiday meltdown

Dec 6 The U.S. government announced on Saturday that it will cancel an $11 million penalty that had been levied on Southwest Airlines as part of a $140 million settlement following the airline's operational collapse during the December 2022 holiday travel rush.

Under the 2023 agreement, Southwest committed to paying $35 million in cash over a three-year period and issuing $90 million in travel vouchers valued at $75 or more to passengers who experienced delays of at least three hours caused by airline-related issues or cancellations. This settlement addressed the disruption that affected more than 2 million travelers.

The U.S. Department of Transportation stated in an official order that the decision to waive the remaining $11 million fine, initially due by the end of January, was influenced by Southwests investment of over $1 billion into operational improvements aimed at enhancing reliability and performance since the 2022 crisis.

Author: Natalie Monroe