Particle.news
Download on the App Store

DOT Under Trump Waives Southwest’s Final $11 Million Penalty Over 2022 Meltdown

The department credited Southwest’s post‑meltdown upgrades as a public‑interest incentive to improve reliability.

Overview

  • An order issued late Friday removes the last $11 million installment of a record $140 million enforcement action tied to Southwest’s December 2022 holiday collapse.
  • DOT cited more than $1 billion in operational investments and specifically $112.4 million in upgrades to Southwest’s Network Operations Control as the basis for the credit.
  • The original 2023 consent order under the Biden administration required $35 million in cash payments to the U.S. Treasury and $90 million in travel vouchers for affected passengers.
  • The 2022 disruption led to roughly 16,900–17,000 cancellations, stranded over 2 million travelers, and prompted about $600 million in refunds and reimbursements, with Southwest later reporting $914 million in after‑tax costs.
  • The waiver follows other shifts under Transportation Secretary Sean Duffy, including dropping a lawsuit over chronically delayed flights and abandoning plans for automatic cash compensation rules.