Southwest Airlines reaches $140 million settlement for December 2022 flight-canceling meltdown

By DAVID KOENIG
AP Airlines Writer

DALLAS (AP) — Southwest Airlines is paying a $35 million fine as part of a $140 million settlement with the government over a meltdown last holiday season. Transportation Secretary Pete Buttigieg said Monday the settlement shows his department will hold airlines accountable if they fail to treat customers properly. The airline canceled nearly 17,000 flights as a winter storm paralyzed operations in Denver and Chicago and then snowballed when a crew rescheduling system couldn’t keep up. Southwest says it didn’t violate consumer protection laws but is striking the agreement to settle the matter. The carrier will pay the $35 million fine and get $33 million in credit for compensation already given to customers. Southwest also gets a $72 million credit for vouchers to future travelers through 2027.