DOT Waives Final $11M Penalty to Southwest Airlines

The U.S. Department of Transportation announced Friday that it is waiving the final $11 million payment in a civil penalty against Southwest Airlines, originally stemming from the carrier's widespread flight cancellations during a severe winter storm in December 2022. The decision credits the airline for substantial investments in operational improvements that have enhanced reliability for passengers nationwide.

The penalty originated from a chaotic holiday period when a powerful winter storm disrupted operations at key hubs including Denver and Chicago. Southwest canceled nearly 17,000 flights over several days, stranding more than 2 million travelers and leaving many without timely assistance. Federal investigators determined the airline violated consumer protection laws by failing to provide prompt refunds, flight notifications, and support for passengers stuck in airports and hotels. Overwhelmed customer service lines resulted in hours-long holds or busy signals, forcing many affected individuals to arrange costly alternative travel during the peak season.

In response, the Department of Transportation imposed a $140 million civil penalty in 2023, the largest ever against an...