Southwest Airlines will pay a $35 million fine as part of a $140 million agreement to settle a federal investigation into cancelling thousands of flights and stranding over 2 million travelers in December 2022 over the holidays. Most of the $90 million settlement will go towards compensating future passengers through travel vouchers and is the largest penalty the US Department of Transportation has ever imposed on an airline for violating consumer protection laws. In addition to the fine, Southwest will get $33 million in credit for compensation already provided to customers, such as frequent flyer points worth $300 each to affected travelers.
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00:00 It's Benzinga and here's what's on the block.
00:02 - Southwest Airlines will pay a $35 million fine
00:05 as part of a $140 million agreement
00:08 to settle a federal investigation
00:10 into canceling thousands of flights
00:12 and stranding over 2 million travelers
00:14 in December, 2022 over the holidays.
00:18 Most of the $90 million settlement
00:19 will go towards compensating future passengers
00:22 through travel vouchers and is the largest penalty
00:25 the US Department of Transportation
00:26 has ever imposed on an airline
00:28 for violating consumer protection laws.
00:31 In addition to the fine,
00:32 Southwest will get $33 million in credit
00:35 for compensation already provided to customers,
00:38 such as frequent flyer points worth $300 each
00:40 to affected travelers.
00:41 - For all things money, visit Benzinga.com.