Southwest Airlines Slapped with $140M Fine for Holiday Meltdown
Southwest Airlines has been fined $140 million by the Department of Transportation for multiple violations of consumer protection laws during and after a holiday meltdown that left millions of passengers stranded. The airline failed to provide adequate customer service assistance, timely flight status notifications, and prompt refunds to affected passengers. The fine includes a $35 million payment to the US Treasury, but Southwest will receive a $33 million credit for issuing Rapid Rewards points to affected passengers. The airline also established a $90 million compensation system and will provide transferrable vouchers for passengers experiencing significant delays. Southwest denies any wrongdoing and has paid over $600 million in reimbursements to affected travelers.
