US waives $11m fine against Southwest Airlines
The Trump administration has waived an $11 million fine previously imposed on Southwest Airlines as part of a $140 million settlement over the carrier’s 2022 holiday travel meltdown.
Southwest had agreed in December 2023 to pay a $35 million cash penalty and provide $90 million in travel vouchers worth $75 or more to passengers delayed at least three hours due to airline-caused disruptions. The meltdown stranded more than 2 million passengers, News.Az reports, citing Reuters.
In a written order, the U.S. Transportation Department said the remaining $11 million fine—originally set under President Joe Biden—would be waived in recognition of Southwest’s decision to invest more than $1 billion in operational improvements since the crisis. USDOT said the move aligns with the public interest by encouraging airlines to strengthen reliability for consumers.
Southwest welcomed the decision, saying it has completed an operational overhaul that has produced industry-leading on-time performance and reduced cancellations.
Under President Donald Trump, USDOT has been rolling back several consumer protection initiatives pursued by the Biden administration. The department has abandoned plans to require cash compensation for airline-caused delays and dropped a Biden-era lawsuit accusing Southwest of operating chronically delayed flights.
Southwest had denied those claims, saying the delays dated back to the pandemic and were often caused by factors beyond its control.
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