Southwest Airlines Slapped with $140 Million Fine for Holiday Meltdown

Southwest Airlines has been ordered by the U.S. Transportation Department to pay a $140 million civil penalty for its operational failures during the 2022 holidays, the largest penalty ever levied for consumer protection violations. The airline canceled 16,900 flights, stranding over 2 million passengers, while other airlines recovered relatively quickly from a major winter storm. As part of the consent order, Southwest is required to establish a $90 million compensation system for future passengers affected by significant delays and cancellations, bringing the total payout for the holiday meltdown to over $750 million.