As millions of passengers begin to fill airports for the 2023 holiday season, Southwest Airlines is still facing the consequences of last year’s holiday travel meltdown.
The Department of Transportation (DOT) levied a record $140 million fine against Southwest on Monday, while introducing new consumer protections and enforcement measures to prevent a repeat of the meltdown that cancelled thousands of flights and stranded passengers across the United States.
“We are pleased to have reached this pro-consumer agreement, which includes a new, industry-leading policy to compensate customers in the event of significant delays and cancellations,” Southwest Airlines said in a statement about the settlement.
Following the 2022 holiday travel meltdown, the Department of Transportation conducted an extensive investigation that found the airline failed to provide prompt refunds and general service to “hundreds of thousands of Southwest customers”.
As a result of the investigation, the DOT says Southwest will be financially responsible for at least $750 million, which includes refunds, future compensation for tickets and more. In addition to the fine and payments, the DOT enforcement action also requires Southwest to establish a $90 million reserve fund for future flight delays and cancellations.
“This industry-leading benefit will ensure that Southwest passengers affected by future significant disruptions will not only receive flight rebooking, hotels and meals during the delay, but also timely compensation from Southwest for the inconvenience,” the DOT release said.
Looking ahead to the current holiday travel season, Southwest Airlines CEO Bob Jordan said in a recent interview that the airline is “absolutely ready” and has taken many steps to ensure reliable air service,
Airline passengers can also use new tools from the Department of Transportation this holiday season, including an interactive dashboard that outlines their rights when flying. “For those planning to fly. I want to emphasise that we’ve dramatically expanded passenger protections in the last two years.”