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Where it hurts

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You are free not to move your customers around the country, but the feds might sock you hard over it:

The federal government has hit Southwest Airlines with a historic fine, one year after an operational failure disrupted tens of thousands of flights and stranded millions of customers during the 2022 holiday-travel season.

The Department of Transportation announced Monday that it is issuing a $140 million civil penalty against the airline, a sanction the agency says is 30 times larger than any past DOT penalty for “consumer-protection violations.” The amount is on top of an additional $600 million worth of reimbursements, in the form of food, lodging, and refunds, that Southwest has made to customers at the department’s urging.

As part of the penalty, Southwest will be required to set aside $90 million in vouchers for future customers affected by extensive delays and cancellations. Southwest will now have to give passengers a $75 voucher if the airline causes them to arrive at their destination more than three hours later than scheduled. This policy will officially go into effect by April 30, 2024, per Southwest.

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