Overview
- Friday’s order forgives the last installment of the $35 million Treasury payment tied to a 2023, $140 million settlement over Southwest’s holiday collapse.
- DOT said granting a credit is in the public interest because it encourages airlines to invest in resiliency that directly benefits travelers.
- Southwest previously paid two $12 million installments, while about $90 million of the penalty was set aside to compensate future passengers for airline‑caused disruptions.
- The 2022 breakdown led to roughly 17,000 cancellations and stranded more than 2 million passengers, and the airline paid about $600 million in refunds and reimbursements.
- The decision comes as the Trump administration’s DOT scales back Biden‑era aviation enforcement, including dropping a lawsuit over chronically delayed flights.