US waives $11 million Southwest Airlines fine imposed over 2022 holiday meltdown

7/12/2025 13:44

The Trump administration said Saturday it will waive an $11 million fine imposed on Southwest Airlines as part of a $140 million settlement over the carrier's meltdown in December 2022 during a busy holiday travel period.



Southwest in December 2023 agreed to pay a $35 million cash fine and provide $90 million over three years in travel vouchers of $75 or more to passengers delayed at least three hours getting to final destinations because of an airline-caused issue or cancellation over the airline's handling of the meltdown that stranded more than 2 million passengers.



The U.S. Transportation Department in a written order cited Southwest's decision to invest over $1 billion in its operations since the 2022 meltdown in its decision to waiver the remaining $11 million of the fine imposed by the administration of President Joe Biden that was due by the end of January.



USDOT said this approach was in the public interest "as it incentivizes airlines to invest in improving their operations and resiliency, which benefits consumers directly."