NewsLocal News

Actions

Southwest faces $140 million settlement after 2022 holiday meltdown

Southwest Airlines Alcohol
Posted

DALLAS — Southwest Airlines is paying a $35 million fine as part of a $140 million settlement with the government over a meltdown last holiday season.

Transportation Secretary Pete Buttigieg said Monday the settlement shows his department will hold airlines accountable if they fail to treat customers properly.

The airline canceled nearly 17,000 flights as a winter storm paralyzed operations in Denver and Chicago and then snowballed when a crew rescheduling system couldn’t keep up.

“From the system and the flights themselves to the inability to reach anybody on a customer service phone line, it is just completely unacceptable,” Buttigieg said back in 2022.

Southwest says it didn't violate consumer protection laws but is striking the agreement to settle the matter.

The carrier will pay the $35 million fine and get $33 million in credit for compensation already given to customers.

Southwest also gets a $72 million credit for vouchers to future travelers through 2027.