The U.S. Department of Transportation has waived the remaining $11 million civil penalty owed by Southwest Airlines for its operational collapse during the 2022 holiday travel period. The waiver follows Southwest’s earlier $140 million settlement and roughly $1 billion of announced systems and operations upgrades.
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The waiver removes the last $11 million in DOT civil penalties tied to Southwest’s December 2022 meltdown; the carrier previously agreed to a $140 million settlement and committed about $1 billion for systems and operational upgrades.
The decision changes the regulatory accountability backdrop as Southwest presses a public reliability campaign while executing a major business-model overhaul, including seat assignments and bag fees intended to improve operational predictability.
The move arrives while Southwest adjusts financial planning and capital allocation—after recent downward profit guidance—which affects how the airline funds ongoing upgrades and balances investments with near-term profitability (see its recent profit outlook cut).
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DOT Waives Final $11M of $140M Southwest Fine — A Sensible Correction • View from the Wing
DOT reduces Biden-era penalty for Southwest over mass flight cancellations • Associated Press
Southwest Refuses Final $11M Payment of $140M DOT Fine Over 2022 Christmas Operations Meltdown • Paddle Your Own Kanoo
$11M Southwest Airlines fine waived by DOT • ABC News
Reuters
• David Shepardson