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- Government Actions:Government Action: BBB reports on known government actions involving business’ marketplace conduct:Southwest Airlines Co. Violations of 49 U.S.C. § 41712 and 14 CFR Part 259; Docket DOT-OST-2023-0001
On December 18, 2023, the U.S. Department of Transportation (DOT) announced a $140 million civil penalty against Southwest Airlines for numerous violations of consumer protection laws during and after the operational failures that cancelled 16,900 flights and stranded over two million passengers over the 2022 Christmas holiday and into the New Year.
The penalty is in addition to the more than $600 million in refunds and reimbursements that DOT already ensured Southwest provide passengers who faced travel disruptions during the operational meltdown.
In total, Southwest will pay over $750 million for the holiday meltdown — with the vast majority going to passengers for refunds, reimbursements, rapid rewards, or future compensation — due to DOT’s actions.
In its investigation, DOT found the company violated consumer protection laws by:
- Failing to provide adequate customer service assistance
- Failing to provide prompt flight status notifications
- Failing to provide refunds in a prompt and proper manner
The U.S. Department of Transportation’s investigation and enforcement action has taken the following actions to benefit consumers:
- Requires Southwest to establish a $90 million compensation system for future passengers affected by significant delays and cancellations
- Penalizes Southwest $140 million for violating consumer protection laws – deterring Southwest and other carriers from committing similar violations in the future
- Ensured passengers were refunded and reimbursed over $600 million for significant delays and cancellations during the 2022 holiday season
The agreement was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law.
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