Southwest canceled nearly 17,000 flights, stranding hundreds of thousands of customers, over last year’s holiday season.
The U.S. Department Transportation on Monday said it fined Southwest Airlines $140 million for violating consumer protection laws during last year’s holiday meltdown that stranded millions of customers following severe winter weather.
The DOT said the fine is 30 times larger than any fine it has issued for consumer protection violations. It includes a $35 million cash payment to the government, which Southwest said will be paid over three years. The agency ordered Southwest to set up a fund to compensate future travelers for flight disruptions in the airline’s control. The airline also received credit for $33 million for giving travelers affected by the disruption frequent flyer miles.
“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,” Transportation Secretary Pete Buttigieg said in a news release.
