The DOT has taken multiple steps to help Southwest customers previously affected by travel mishaps, as well as those who may be impacted in the future.
Compensation System and Travel Vouchers for Delayed Passengers
Southwest will now be required to reserve $90 million in vouchers for future customers impacted by significant delays and controllable cancellations.
What does this mean for the casual Southwest flyer? If the airline causes a passenger to arrive at their destination three hours or more after their scheduled arrival time due to an issue in Southwest’s control, the airline must provide the passenger with a transferable $75 voucher for future use.
Penalty for Violating Consumer Protection Laws
Of the $140 million that Southwest has been penalized for violating consumer protection laws, $35 million will go to the U.S. Treasury. Fortunately for the airline, Southwest will not be charged the whole amount. The company will receive a $72 million offset due to the implementation of the $90 million compensation system.
Further, Southwest will receive a credit of $33 million due to its previous issuing of 25,000 Rapid Rewards points to passengers impacted by the 2022 holiday operation failures.
Refunds and Reimbursements for Affected 2022 Travelers
Just a few months before the holiday chaos, Southwest responded to mounting DOT pressure by overhauling its customer service policies in September 2022. Due to these new policies, Southwest was required to reimburse stranded passengers for the expenses they incurred.
Throughout its investigation, the DOT ensured that Southwest issued over $600 million in refunds and reimbursements to those who faced disruptions during the 2022 holiday season. And as previously mentioned, affected passengers were also provided with 25,000 Rapid Rewards points each.
Read more: Best Southwest Credit Cards of December
