DOT fines Southwest Airlines record $140 million after 2022 holiday meltdown

The Department of Transportation issues a record $140 million civil penalty against Southwest Airlines for stranding approximately 2 million passengers during the airline's December 2022 holiday meltdown, when the carrier cancelled nearly 17,000 flights. The settlement also requires Southwest to pay $600 million in cash and flight vouchers to affected passengers, the largest consumer refund ever in aviation history. Transportation Secretary Pete Buttigieg calls it a signal to the industry that leaving passengers stranded without compensation is not acceptable. The action reflects Biden's aggressive consumer protection posture toward the airline industry.