Southwest Airlines is finally done paying a record-breaking fine for its spectacular 2022 Christmas holiday collapse
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- The Trump administration has forgiven the last of a record-breaking fine against Southwest Airlines.
- Southwest was fined $140 million for a 2022 meltdown that led to the cancellation of 17,000 flights.
- The Transportation Department said the carrier's operational upgrade met the requirement.
The financial fallout from Southwest Airlines' 2022 meltdown, which resulted in the cancellation of nearly 17,000 flights at the height of the Christmas holiday, has come to an end.
The Department of Transportation fined the carrier a record $140 million in 2023 for the chaos. The Trump administration this week forgave the last $11 million payment.
In its order, the Transportation Department said the final installment was waived because Southwest had improved its on-time performance and had completed a $112.4 million upgrade to its network operations.
The original penalty required the airline to pay $35 million in cash payments to the US government, including the now-forgiven $11 million. The 2023 settlement also required Southwest to compensate travelers with future travel credits worth far more than the cash penalty.
The spectacular collapse occurred during the 2022 holiday rush, causing thousands of cancellations and delays that stranded passengers across the country. One passenger told Business Insider it took him 41 hours to travel between Los Angeles and Denver. The airline also lost his bag.
Southwest Airlines CEO Bob Jordan called it a "tough day" for the company at the time. The airline later said its scheduling technology contributed to the failure, compounding the winter storm that kicked off the crisis.