Feds Waive Biden-Era Fine for Southwest Fiasco

The Trump administration has decided to waive the remaining $11 million fine levied against Southwest Airlines for its disastrous 2022 holiday meltdown that saw nearly 17,000 flights canceled and roughly two million passengers stranded. The penalty, originally imposed by the Biden administration's Department of Transportation after a lengthy investigation, was part of a $35 million civil fine for violations of consumer protection laws. Southwest had already paid $24 million, with the final installment due in early 2026, reports the Wall Street Journal.

But a new DOT order issued Friday wiped out that final payment, citing Southwest's reported $1 billion investment in technology and operational improvements. The DOT said the decision to credit the airline for these investments means the public will benefit directly from the upgrades, rather than the government collecting the money. A department spokesperson said Southwest agreed to put the $11 million toward further system improvements as part of the deal. Southwest, for its part, thanked Transportation Secretary Sean Duffy and the DOT for acknowledging its efforts to modernize.

The Biden administration's investigation determined that the airline had violated consumer protection laws by failing to help stranded passengers, reports the AP. The fine was part of a record $140 million penalty against Southwest, most of which involved compensation for passengers and a requirement for Southwest to upgrade technology and procedures. ABC News reports. The Trump administration recently rolled back a Biden-era proposal that would have required airlines to issue cash refunds for significant flight delays.