In a surprise move, the Trump administration has announced its intention to waive an $11 million fine imposed on Southwest Airlines as part of a larger settlement over the carrier's infamous 2022 holiday meltdown. The airline had previously agreed to pay a whopping $35 million in cash fines over three years, with a further $90 million worth of travel vouchers to be handed out to passengers who were delayed by at least three hours.
The fine was initially imposed as part of a $140 million settlement, but the US Transportation Department has now cited Southwest's subsequent efforts to improve its operations and reliability - including an investment of over $1 billion in recent years - as a reason for waiving the remaining amount. The department pointed to this increased commitment to performance and reliability as evidence that Southwest had taken steps to address the issues that led to the 2022 meltdown.
The waiver brings an end to a long-standing dispute between the airline and the government, with Southwest having shown a clear willingness to take concrete action to prevent similar incidents in the future. By waiving this final fine component, the administration appears to be signaling its satisfaction with the airline's efforts to reform its operations and improve passenger experience.
The fine was initially imposed as part of a $140 million settlement, but the US Transportation Department has now cited Southwest's subsequent efforts to improve its operations and reliability - including an investment of over $1 billion in recent years - as a reason for waiving the remaining amount. The department pointed to this increased commitment to performance and reliability as evidence that Southwest had taken steps to address the issues that led to the 2022 meltdown.
The waiver brings an end to a long-standing dispute between the airline and the government, with Southwest having shown a clear willingness to take concrete action to prevent similar incidents in the future. By waiving this final fine component, the administration appears to be signaling its satisfaction with the airline's efforts to reform its operations and improve passenger experience.