Trump Administration Waives Final $11 Million Fine for Southwest Airlines Over 2022 Holiday Meltdown

The Trump administration has waived the remaining $11 million of the civil penalty imposed on Southwest Airlines for its disastrous 2022 holiday meltdown, a failure that stranded roughly 2 million passengers after the carrier canceled nearly 17,000 flights during a weeklong operational collapse.

The Department of Transportation (DOT) said in an order filed Friday that it will credit Southwest the remaining $11 million, citing the airline’s more than $1 billion in technology and operational upgrades completed since the crisis. Southwest had been scheduled to make its final payment next month.The fine originated under the Biden administration, which in late 2023 issued a record-setting $140 million penalty after concluding that Southwest violated federal consumer protection laws by failing to provide:

• Prompt customer service
   
• Timely flight notifications
   
• Refunds for canceled flights

However, regulators at the time credited Southwest with all but $35 million of the penalty because of the airline’s customer compensation efforts. Friday’s move eliminates the final portion of that remaining balance.A DOT spokesperson under the Trump administration said the decision “is in the public interest, as it incentivizes airlines to invest in improving their operations and resiliency, which benefits consumers directly.”Southwest has paid $24 million to the government so far; the new DOT order treats the remaining $11 million as a performance-improvement credit.

Southwest Airlines welcomed the waiver, saying in a statement: “Southwest Airlines is grateful to Secretary Duffy and the DOT Team for recognizing Southwest’s significant investments in modernizing our operations… Southwest successfully completed an operational turnaround that directly benefits our Customers with industry-leading on-time performance and completed flights without cancellations.”

The move marks another rollback of Biden-era aviation rules by the Trump administration. Just weeks earlier, regulators scrapped a proposal that would have required airlines to pay passengers up to $775 in cash for major delays and cancellations within a carrier’s control. While Southwest’s meltdown originally prompted calls for stricter consumer protection enforcement, the Trump administration is instead promoting what it calls a “partnership approach”, crediting airlines financially when they invest in reliability upgrades.

About Southwest Airlines

Southwest Airlines Co. (NYSE: LUV) is a major U.S. airline headquartered in Dallas, Texas. Founded in 1967, Southwest is known for its point-to-point route network, no-change-fee policy, and high-frequency domestic operations. The airline operates one of the world’s largest fleets of Boeing 737 aircraft and serves more than 100 destinations across the United States, Caribbean, and Latin America. Southwest carries more U.S. domestic passengers than any other airline and has long emphasized low fares, operational efficiency, and customer-friendly policies.

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