The U.S. Transportation Department has informed Southwest Airlines that a civil penalty is justified due to the airline's operational meltdown in December, which resulted in 16,700 flight cancellations and disrupted the travel plans of 2 million passengers.
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In a securities filing, Southwest revealed that the department had determined on Friday that the airline had not provided sufficient customer service support, timely flight status updates, and appropriate and prompt refunds, thus justifying the imposition of a civil penalty.
The Transportation Department confirmed the accuracy of the filing but declined to provide additional comments. In December, Southwest Airlines experienced an operational crisis due to adverse weather conditions that also impacted other airlines. This was exacerbated by its outdated scheduling system, resulting in costs exceeding $1 billion. Southwest refrained from further comment as discussions with the Transportation Department are ongoing and part of a process they are respecting by withholding specific comments until a resolution is reached.
The airline stated that it has been extensively discussing its comprehensive effort and substantial investment to enhance the resilience of its preparation and operation in irregular conditions. Last month, Southwest CEO Robert Jordan stated that the airline is better equipped to manage the upcoming winter weather due to the low-cost carrier's "significant investments" in improving de-icing capacity and staffing.
