DALLAS — Federal regulators have informed Southwest Airlines that they did not provide sufficient assistance to stranded travelers during massive cancellations in December last year, and the airline may face a fine.
In a regulatory filing on Monday, Southwest stated that they cannot estimate the cost of the fine or damages from lawsuits following the cancellation of nearly 17,000 flights in December.
The U.S. Department of Transportation notified Southwest on Friday that the company failed to provide adequate customer service assistance, prompt flight status notifications, and proper and timely refunds, warranting the assessment of a civil penalty.
In January, the government announced an investigation into Southwest’s service collapse, which left over 2 million travelers stranded and cost the airline at least $1.1 billion in lost sales and additional expenses, including refunds.
In a quarterly financial filing on Monday, Southwest revealed that they may also face costs from lawsuits filed by customers and shareholders. This filing followed Southwest’s report of a 30% decrease in profit in the July-through-September quarter and plans to scale back growth in early 2024.