The Southwest Airlines Holiday Debacle: A New Precedent for the United States and How to Ensure They’re Resolving Their Misfortune

“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,” US Transportation Secretary Pete Buttigieg said in a statement. The fact that airlines have to take care of passengers is required, and this penalty should make airlines more aware of how to prevent a debacle like this from happening again.

In the last six years the airline has paid out over $600 million in refunds and reimbursements to travelers who faced disruptions. DOT said the airline will pay up to $750 million for the holiday debacle.

Southwest must put together a $90 million compensation system for passengers who are affected by delays and cancellations if it is to avoid a $140 million penalty.

Following an investigation, the DOT found Southwest failed to “provide adequate customer service assistance,” stating passengers stranded at airports were met with busy signals, long queues, and dropped calls when trying to get in touch with the airline. The DOT said Southwest didn’t give timely or accurate flight status notifications to customers and failed to give refunds to thousands of passengers.

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