Home Latest Southwest pays a $140 million effective for its meltdown in the course of the 2022 holidays

Southwest pays a $140 million effective for its meltdown in the course of the 2022 holidays

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Southwest pays a $140 million effective for its meltdown in the course of the 2022 holidays

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Pristine Floyde searches for a pal’s suitcase in a baggage holding space for Southwest Airlines at Denver International Airport in December 2022.

Michael Ciaglo/Getty Images


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Michael Ciaglo/Getty Images


Pristine Floyde searches for a pal’s suitcase in a baggage holding space for Southwest Airlines at Denver International Airport in December 2022.

Michael Ciaglo/Getty Images

WASHINGTON — Southwest Airlines is still paying for its meltdown in the course of the 2022 holidays that stranded millions of travelers — and the tab is rising.

The U.S. Transportation Department has ordered Southwest to pay a $140 million civil penalty, a part of a broader consent order after the airline’s operational failures a yr in the past.

That penalty is by far the most important the DOT has ever levied for client safety violations, in line with a press release from the division.

A digital show reveals cancelled flights within the Southwest Airlines baggage space at Los Angeles International Airport in December 2022.

Robyn Beck/AFP by way of Getty Images


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Robyn Beck/AFP by way of Getty Images


A digital show reveals cancelled flights within the Southwest Airlines baggage space at Los Angeles International Airport in December 2022.

Robyn Beck/AFP by way of Getty Images

“Today’s action sets a new precedent and sends a clear message: if airlines fail their passengers, we will use the full extent of our authority to hold them accountable,” Transportation Secretary Pete Buttigieg mentioned in a press release saying Monday’s order.

A significant winter storm final December induced journey disruptions throughout the nation as airways canceled 1000’s of flights. But whereas different airways recovered comparatively rapidly, Southwest fell apart. The airline finally canceled 16,900 flights, stranding greater than 2 million passengers.

Since the disruption, Southwest says it has taken steps to enhance its operational resiliency and buyer care.

“We have spent the past year acutely focused on efforts to enhance the Customer Experience with significant investments and initiatives that accelerate operational resiliency,” mentioned Bob Jordan, Southwest Airlines President & CEO in a press release. “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.”

Under the settlement, Dallas-based Southwest is required to ascertain a $90 million compensation system for future passengers affected by vital delays and cancellations, which counts as a part of the $140 million penalty.

The airline has already paid out greater than $600 million in refunds and reimbursements to vacationers who confronted disruptions. In whole, the airline pays out over $750 million for the vacation meltdown, DOT mentioned.

“Taking care of passengers is not just the right thing to do — it’s required, and this penalty should put all airlines on notice to take every step possible to ensure that a meltdown like this never happens again,” Buttigieg mentioned.

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