Southwest Airlines Braces for Potential Fines Following DOT Probe into Last Year's Widespread Holiday Flight Cancellations

Department of Transportation's investigation determines that Southwest Airlines failed to provide adequate customer service, timely flight notifications, and proper and timely refunds during the 2022 holiday season flight cancellations that left 2 million passengers stranded.

The US Department of Transportation has determined that Southwest Airlines could face potential fines following widespread holiday flight cancellances in 2022 that left 2 million passengers stranded, due to inadequate customer service, timely flight notifications, and prompt and proper refunds.
The airline's near-total system meltdown was caused by a severe winter storm, and although all airlines were affected, Southwest's recovery was notably slower than other airlines.
The December cancellations are estimated to have directly cost Southwest Airlines at least $1.1 billion in lost sales and extra costs including refunds; the extent of further financial consequences through potential fines, civil penalties, litigation costs, and shareholder lawsuits is still unknown.
In response to the criticism, Southwest Airlines has proposed an 'action plan' to address shortcomings revealed during the December 2022 crisis, including improvements to winter operations, investment in technology and equipment, and better communication across terms.
Southwest's mishandling of the situation drew ire from its pilots' union and Congress, with the union claiming the system failures were both predictable and avoidable.