Washington, United States: The U.S. The Department of Transportation (DOT) has officially waived the final US$ 11 million payment of a civil penalty previously imposed on Southwest Airlines in connection with its mass-flight cancellations during the 2022 holiday travel period.
In December 2022, during a severe winter storm, Southwest cancelled nearly 17,000 flights, leaving over 2 million passengers stranded across the United States. The airline’s crew-rescheduling and operations control systems collapsed under pressure.
In December 2023, after a formal investigation, DOT imposed a record-breaking US$ 140 million civil penalty on the airline, the largest fine ever issued by the agency to a U.S. carrier for consumer-protection violations. The settlement included US$ 35 million payable to the U.S. Treasury, with the balance to be covered through credits and compensation to affected customers.
Southwest had already made two payments of US$ 12 million each in early 2024 and early 2025. The remaining US$ 11 million was scheduled for payment by January 31, 2026.
In its updated consent order, DOT cited “significantly improved on-time performance and completion factor” demonstrated by Southwest, attributing this turnaround to the airline’s substantial investments in modernizing its operations. According to DOT, these improvements justified crediting the remaining US$ 11 million rather than demanding payment.
Southwest reportedly invested more than US$ 1 billion since the 2022 crisis to upgrade its internal systems, enhance crew scheduling and tracking capabilities, and overhaul its network operations.
DOT said the waiver is in the “public interest,” arguing that incentivising airlines to improve reliability and resilience ultimately benefits consumers more than simply collecting a monetary penalty.
In a statement, Southwest expressed gratitude, noting that the last two years saw an “operational turnaround” that delivered better on-time performance and lower cancellation rates, directly benefiting passengers.
