FEDS HIT SOUTHWEST AIRLINES WITH $140M FINE FOR 2022 HOLIDAY TRAVEL FIASCO
January 8, 2024
DOT recently assessed the largest consumer protection penalty in the agency’s history against Southwest Airlines for “failing to provide adequate customer service assistance, flight status notifications and refunds in a prompt and proper manner during its 2022 holiday meltdown.” The penalty, part of a consent order which Southwest was notified of in October 2023, is 30 times larger than any previous consumer protection penalty. The violations occurred when Southwest “canceled 16,900 flights and stranded more than two million passengers.” Southwest is required to pay $35 million to the U.S. Treasury and DOT respectively, and set up a $90 million compensation system for future vouchers that will be given to passengers who experience a “controllable” cancellation or delay. For example, vouchers worth $75 will be given to passengers who arrive more than three hours after their original scheduled arrival time in addition to rebooking hotel, and food accommodations. DOT reviewed thousands of complaints and interviewed Southwest officials.
If you have any questions, please contact Evelyn Sahr at 202.659.6622 or esahr@eckertseamans.com; Drew Derco at 202-659-6665 or dderco@eckertseamans.com; Jay Julien at 202.659.6648 or jjulien@eckertseamans.com, or any other attorney at Eckert Seamans with whom you have been working.
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