Airline Fined Millions for 2022 Holiday Meltdown

The United States Department of Transportation announced that it would fine Southwest Airlines $140 million following an investigation that began during the “Rapid Reward” airline’s meltdown in December 2022.

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A perfect storm of holiday madness culminated in thousands of stranded passengers, lost luggage, and a reduced flight schedule. A member of the Inside the Magic team was stuck in a historic blizzard in Western New York, made worse by the lack of communication about canceled flights from Southwest.

While weather had an impact in some areas, most airlines recovered quickly. According to Southwest flight attendants from Denver, an outdated digital scheduling system broke down. Even in areas unaffected by weather, passengers felt no “luv” from the budget airline as more flights were canceled than the number that departed.

Nadia Rasul was already on her plane to Ohio when the pilot announced that no flight attendants in Orlando could service the aircraft. “So we had to get off the flight, so we got off the plane, and we said we want our suitcases now, and they said there is no way to get your suitcases,” the passenger told WESH2.

Nearly a year later, Southwest Airlines will pay a $140 fine as part of a larger consent order issued by the United States Department of Transportation. They’ll also pay $35 million to the United States Treasury over three years.

It’s not just the government raking in cash. According to the document, Southwest Airlines must establish a $90-million compensation fund for future passengers impacted by significant delays and cancellations.

In a statement on Monday, Southwest Airlines called the consent order a “consumer-friendly settlement.”

“We have spent the past year acutely focused on efforts to enhance the Customer Experience with significant investments and initiatives that accelerate operational resiliency,” Bob Jordan, Southwest Airlines President & CEO, said. “Our commitment to Customers has been central to our success across our 52-year history and has helped us become one of the world’s most admired and trusted airlines.”

Transportation Secretary Pete Buttigieg told NPR’s Morning Edition that the settlement sets a precedent for other airlines.

“This is not just about Southwest,” Buttigieg said. “This is about the entire industry, sending a signal that you should not be cutting corners — because if you fail your passengers, we will hold you accountable.”

Were you part of Southwest Airlines’ meltdown in December 2022? 

This post is originally appeared on Inside the Magic.