Southwest Airlines Slapped with $140 Million Fine for Christmas Meltdown
The Transportation Department has fined Southwest Airlines $140 million for multiple violations of airline consumer protections during its Christmas and New Year's meltdown last year. The fine is 30 times larger than any previous penalty issued by the department. Southwest has also been ordered to establish a $90 million fund to compensate passengers affected by future delays. The airline faced significant disruptions due to freezing weather and a staff scheduling system issue. Southwest disputes the department's legal conclusions but has agreed to accept the fine. The compensation fund will provide $75 vouchers to customers who experience significant delays or cancellations within Southwest's control.