Summary
The U.S. Department of Transportation (DOT) has waived the remaining $11 million of Southwest Airlines' $140 million fine for a major travel disruption during the December 2022 holiday season. The DOT decided to forgo this penalty due to Southwest's improvements in their operations and investments in their network.
Key Facts
- The U.S. DOT waived the final $11 million of Southwest's $140 million penalty.
- The penalty was related to a travel disruption during a winter storm in December 2022.
- Over 2 million travelers were affected, with Southwest canceling 17,000 flights.
- Most of the penalty funds went towards compensating affected travelers.
- The incident cost Southwest over $1.1 billion in total.
- Southwest has since improved its on-time performance and invested in infrastructure.
- The DOT believes waiving the penalty encourages airlines to improve their systems.
- Southwest's performance will continue to be monitored by the federal government.
