Southwest fined $140m for neglecting customers during disruption

by | Dec 19, 2023 | Airlines

Southwest Airlines has been fined $140 million by the US Department of Transportation (DOT) for its 2022 “holiday travel meltdown.”

The record-breaking fine is 30 times larger than any previous similar punishment after an estimated 2 million passengers were left stranded when 17,000 flights were cancelled by the major US carrier. Crucially, the fine is a result of “Southwest’s failure to properly care for its passengers, many of whom were stranded without flights – or any information.”

U.S. Transportation Secretary Pete Buttigieg said in a statement:

“Today’s action sets a new precedent and sends a clear message: if airlines fail their passengers, we will use the full extent of our authority to hold them accountable. Taking care of passengers is not just the right thing to do — it’s required, and this penalty should put all airlines on notice to take every step possible to ensure that a meltdown like this never happens again.”

The investigation showed that the airline violated consumer protection laws by failing to provide adequate customer service assistance, failing to provide prompt flight status notifications, and failing to provide refunds in a prompt and proper manner.

This incident underscores the importance of a robust irregular operations (IROPs) strategy for all airlines. Effectively managing IROPs, especially through timely communication with passengers is paramount in a customer-focused industry. This is a message that was echoed by many leaders at the World Aviation Festival earlier this year who said, it is how you navigate challenges that leaves a lasting impression on passengers. People might not remember when everything goes smoothly, but they will remember how you cared for them it times of uncertainty.

 

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