Southwest faces possible Dept. of Transportation fine over flight cancellations

Southwest flight cancellations overview:

• Who: Southwest Airlines told the Securities and Exchange Commission that the company may face a fine from the U.S. Department of Transportation due to last year’s disruptive flight cancellations.
• Why: The DOT reportedly determined that Southwest failed to provide adequate customer service or refunds to affected customers.
• Where: The potential Southwest fine was declared in the airline’s SEC filing.

Southwest Airlines may be on the hook financially over its flight cancellations during the 2022 holiday season, according to the airline’s U.S. Securities and Exchange Commission filing.

The U.S. Department of Transportation reportedly notified Southwest Airlines that it may impose a fine due to the disruption in its procedures that caused more than 16,700 Southwest flight cancellations between Dec. 21 and 29 last year.

The DOT found that Southwest Airlines “failed to provide adequate customer service assistance, prompt flight status notifications, and proper and prompt refunds and that the assessment of a civil penalty is warranted,” Southwest’s SEC filing notes.

The SEC filing did not provide an estimate on the amount of the proposed Southwest fine.

Southwest also informed the SEC that it could face monetary damages from litigation filed by customers and shareholders, but the airline said it could not estimate the amount of damages it could face.

Inadequate preparation, tech issues caused Southwest flight cancellations, COO testified

Southwest’s COO Andrew Watterson told the Senate Committee on Commerce, Science and Transportation at a February hearing that the airline “did not have enough winter operational resilience,” Law360 reports.

Watterson reportedly noted that the airline lacked adequate de-icing equipment and was not prepared for the way in which extremely cold temperatures affected jet bridge hydraulics and ground support equipment fuel.

To make matters worse, Southwest’s internal flight crew scheduling system could not meet the airline’s urgent need to reschedule flights during the massive winter storm that hit the country days before Christmas, according to Law360.

Customers and investors have filed lawsuits over the Southwest flight cancellations. One investor lawsuit claims Southwest knew its technology was in need of an update and that its route structure left the airline particularly vulnerable to inclement weather. Despite this knowledge, Southwest allegedly concealed these risks from shareholders, the plaintiff claims.

A Pennsylvania federal judge recently denied a motion to certify a Southwest Airlines class action lawsuit that alleged the airline breached its contract with customers and violated federal regulations by failing to offer refunds for flights that were canceled due to the COVID-19 pandemic.

Were you affected by last year’s Southwest flight cancellations? Tell us about your experience in the comments.

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