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Southwest fined $140M for last year’s holiday chaos

# Southwest Airlines Fined $140 Million for Violating Consumer Protection Laws during Holiday Meltdown

The U.S. Department of Transportation has fined Southwest Airlines $140 million for violating consumer protection laws during last year’s holiday meltdown. This incident occurred when severe winter weather stranded millions of customers, causing significant flight disruptions.

## Record-Breaking Fine

The fine imposed on Southwest Airlines is 30 times larger than any fine previously issued by the DOT for consumer protection violations. It includes a $35 million cash payment to the government, which the airline will pay over three years. Additionally, the agency has ordered Southwest Airlines to establish a fund to compensate future travelers for flight disruptions within the airline’s control. The airline will also receive credit for $33 million for providing frequent flyer miles to affected travelers.

## Accountability and Precedent

Transportation Secretary Pete Buttigieg stated, “Today’s action sets a new precedent and sends a clear message: if airlines fail their passengers, we will use the full extent of our authority to hold them accountable.” This emphasizes the government’s commitment to ensuring consumer protection in the airline industry.

## Lack of Customer Assistance and Prompt Notifications

The DOT found that Southwest Airlines did not provide sufficient customer assistance during the holiday meltdown. The airline’s call center was overwhelmed, resulting in long wait times and busy signals for customers trying to reach customer service. Additionally, Southwest Airlines failed to promptly notify customers of flight changes, further exacerbating the situation.

## Delayed Refunds and Reimbursements

The DOT audit revealed that Southwest Airlines did not provide refunds or reimbursements in a timely manner. This further added to the frustration and dissatisfaction experienced by affected customers.

## Last Year’s Holiday Meltdown

During the year-end holiday period last year, Southwest Airlines canceled nearly 17,000 flights due to a severe winter storm. This left approximately two million people stranded and cost the airline over $1 billion. The airline had to reimburse and refund customers more than $600 million.

## Commitment to Improvement

Southwest Airlines CEO Bob Jordan expressed his commitment to preventing a repeat of last year’s holiday meltdown. The airline has made significant improvements, including the purchase of additional de-icing equipment and upgrades to crew scheduling technology. These enhancements aim to enhance operational resiliency and preparedness for winter operations.

“We have spent the past year acutely focused on efforts to enhance the Customer Experience with significant investments and initiatives that accelerate operational resiliency, enhance cross-team collaboration, and bolster overall preparedness for winter operations,” said Jordan in a news release.

Southwest Airlines is determined to ensure a smoother travel experience for its customers during the upcoming holiday season.

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