U.S. Department of Transportation Waives Final $11 Million of Southwest Airlines Fine

The U.S. Department of Transportation (DOT) has waived the final $11 million of a $35 million civil penalty imposed on Southwest Airlines following the airline's operational disruptions during a severe winter storm in December 2022. This decision acknowledges Southwest's substantial improvements in on-time performance and investments in network operations.

In December 2023, under the Biden administration, Southwest agreed to a $140 million settlement, which included $35 million payable to the U.S. Treasury. The airline made two payments of $12 million each in 2024 and earlier this year. The remaining $11 million, originally due by January 31, 2026, has now been waived by the DOT.

The DOT stated that this approach incentivizes airlines to invest in improving their operations and resiliency, directly benefiting consumers. The department emphasized that this credit structure allows the benefits of the airline's investment to be realized by the public, rather than resulting in a government monetary penalty.

The original fine was imposed after Southwest canceled 17,000 flights during the December 2022 winter storm, stranding over 2 million travelers. The disruptions were attributed to failures in the airline's crew-rescheduling system. The Biden administration determined that Southwest violated consumer protection laws by failing to adequately assist stranded customers.

Southwest expressed gratitude for the DOT's recognition of its efforts to modernize operations. The airline highlighted its operational turnaround over the past two years, resulting in industry-leading on-time performance and a high percentage of completed flights without cancellations.