"The government said at the time that the penalty was the largest it had ever imposed on an airline for violating consumer protection laws. Most of the money went toward compensation for travelers. But Southwest agreed to pay $35 million to the U.S. Treasury. Southwest made a $12 million payment in 2024 and a second $12 million payment earlier this year. But the Transportation Department issued an order Friday waiving the final $11 million payment, which was due Jan. 31, 2026."
""DOT believes that this approach is in the public interest as it incentivizes airlines to invest in improving their operations and resiliency, which benefits consumers directly," the department said in a statement. "This credit structure allows for the benefits of the airline's investment to be realized by the public, rather than resulting in a government monetary penalty." The fine stemmed from a winter storm in December 2022 that paralyzed Southwest's operations in Denver and Chicago."
Under a 2023 settlement, Southwest agreed to a $140 million civil penalty for violating consumer protection laws. Most of the money was for traveler compensation and $35 million was designated for the U.S. Treasury. Southwest paid $12 million in 2024 and another $12 million earlier this year. The Transportation Department waived the remaining $11 million payment due Jan. 31, 2026, citing improved on-time performance and investments in network operations. The department said the credit structure incentivizes resiliency and lets the public benefit from airline investments. The penalty stemmed from a December 2022 winter storm that caused 17,000 canceled flights and stranded over 2 million travelers amid service failures.
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