On Monday morning, Southwest Airlines announced that it has been fined $140 million for last holiday season’s winter meltdown that saw thousands of flights canceled and delayed, disrupting travel for millions of fliers.
The airline shared in a press release that it came to an agreement with the Department of Transportation on the fine, which is the largest penalty brought down on an airline for violating consumer protection laws ever.
The fine will see Southwest pay $35 million cash to the DOT over three years, while the remaining $90 million of the settlement will go toward compensation of future passengers to avoid a crisis like 2022.
The DOT said in a consent order that Southwest “violated the law on numerous occasions,” including when it failed to aid its stranded travelers.
Hoping the lawsuit will push other airlines to be better, Transportation Secretary Pete Buttigieg said the fine was also a message.
“This penalty should put all airlines on notice to take every step possible to ensure that a meltdown like this never happens again,” Buttigieg said in a statement.
Bob Jordan, the CEO and President of Southwest Airlines, also shared his thoughts in a statement, noting that they are working to make sure what happened last year never happens again.
“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,” Jordan said.
In total, the DOT investigation found that 16,900 flights were either canceled or delayed during the meltdown, affecting over 2 million passengers.
In response to the disruptions, Southwest shelled out nearly $600 million in ticket refunds, expense reimbursements, and “goodwill gestures.”