Southwest Airlines holiday meltdown: $140 million settlement and customer compensation

Southwest Airlines reached a settlement with the Transportation Department for its 2021 flight-cancellation meltdown, but future flyers could benefit.

Southwest Airlines has reached a settlement with the Transportation Department after a flight-cancellation meltdown last December. The airline has already paid out more than $600 million to customers impacted by last year's cancellations. The settlement includes a $140 million civil penalty, the largest ever imposed on an airline. Southwest has also agreed to set aside $90 million in flight vouchers to compensate passengers impacted by future delays or cancellations. This is a step further than the policy outlined in the airline's current contract of carriage, which states that travelers subject to those delays are provided with a meal voucher. If your flight is delayed because of weather or a mechanical issue or something within the airline's control, the best thing to do is just go onto that website, find your airline and see what you're entitled to. If you believe your airline isn't honoring its own policies or regulatory requirements, you can file a complaint with the DOT.

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