The U.S. Department of Transportation has decided to waive the remaining $11 million in fines owed by Southwest Airlines as part of a record $140 million penalty stemming from the airline’s operational failures during the 2022 holiday travel season.
According to the DOT, the waiver reflects Southwest’s $112.4 million investment in its Network Operations Control (NOC), which significantly improved the airline’s on-time performance and completion rate. Rather than submitting the $11 million as a civil penalty, the airline receives a credit for these operational improvements. The agency said the move is designed to encourage airlines to invest in measures that enhance reliability and resiliency, ultimately benefiting passengers. “This credit structure allows for the benefits of the airline’s investment to be realized by the public, rather than resulting in a government monetary penalty,” the DOT noted.
The original $140 million penalty, imposed in 2023, was the largest in U.S. history against an airline. It required Southwest to upgrade technology, improve procedures, and compensate passengers for future cancellations or significant delays. The fine was to be paid in three installments: two of $12 million and a final $11 million due January 31, which has now been waived.
Southwest said the decision acknowledges its substantial operational improvements over the past two years, highlighting industry-leading on-time performance and flight completion rates. The 2022 holiday travel chaos, worsened by a major winter storm, led to more than 16,900 flight cancellations and stranded over 2 million passengers. In addition to the DOT penalty, the airline paid approximately $600 million in refunds and reimbursements to affected customers.