CHARLOTTE, N.C. — Southwest Airlines must pay a $140 million civil penalty after millions were impacted by what's now called the "2022 Holiday Meltdown."

What You Need To Know

  • Southwest Airlines must pay millions after violating consumer protection laws, that resulted in over two million people being stranded during the 2022 Christmas holiday
  • The penalty is 30 times larger than any other DOT consumer protection violation 
  • A North Carolina businesswoman says the settlement is a step in the right direction toward preventing another major meltdown from happening again 

According to a press release from the U.S. Department of Transportation, Southwest Airlines violated numerous consumer protection laws after operational failures led to the cancellation of over 16,000 flights.

Over two million people ended up being stranded over the Christmas holiday and New Year period.

The DOT says this specific penalty is 30 times larger than any of the DOT's previous consumer protection violations. 

A majority of the penalty funds will benefit Southwest passengers impacted by cancellations or significant delays caused by the airline. 

"The penalty is in addition to the more than $600 million in refunds and reimbursements that DOT already ensured Southwest provide passengers who faced travel disruptions during the operational meltdown. In September 2022, at the urging of Secretary Buttigieg, Southwest Airlines made significant changes to its customer service plan that entitled passengers to reimbursements for expenses such as meals, hotels and ground transportation if a flight is significantly delayed or cancelled due to an airline issue. As a result of DOT’s actions, Southwest was legally required to adhere to those commitments during the 2022 holiday travel meltdown," the DOT press release said.

Some businesses say the settlement is a good step toward accountability with airlines. 

Shanell Varner is the CEO and founder of Moonglade Travel, a luxury boutique travel consultant company in North Carolina. 

Her business specializes in curating intimate travel experiences and wellness retreats.  

"Help them be prepared as best as possible, help them navigate any issues that may arise in air travel," Varner said. "Also, be able to advocate on their behalf when they return home with issues, [such as] helping them get refunds and travel credits they're do from these unexpected delays from travel."

Varner says traveling can be extremely stressful, especially for those booking flights. 

"The majority of our clients prefer to fly, because we do specialize in international destinations," Varner said. 

Her company is helping to ease travel burdens.

But Varner says concerns have been raised after the 2022 Holiday Meltdown.

"We were devastated [to see that happen]," Varner said. 

Varner says none of her clients were directly impacted by the meltdown, but she says some have experienced similar incidents with carriers.

"We've seen a lot of major airlines have similar situations, not as grand as this. But travelers are concerned," Varner said. 

Varner says accountability from airlines and travel officials is of utmost importance. 

She says the settlement will help put some travelers at ease knowing something is being done to prevent a future meltdown event. 

"I was happy to see the settlement was reached and clients were refunded and compensated for the unfortunate situation," Varner said. "It still is unsettling."

In the future, Varner feels more can be done by airlines to prevent a future holiday meltdown from happening again. 

"Holding airlines accountable," Varner said. "Also, be more prepared. I know one of the things that came out of this settlement is increasing staff during peak times. I think that would be another avenue or approach to make sure we're well prepared for busy seasons like the holidays."

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