The US Government Is Letting Southwest Airlines Off Easy
After a Southwest Airlines software meltdown stranded two million customers over Christmas three years ago, the Department of Transportation imposed a $140 million fine. The Trump administration just let the airline off the hook for its remaining payments.

The Biden administration imposed a record-setting fine on Southwest Airlines for stranding many customers over the holidays three years ago. Now Donald Trump is waiving the airline’s final $11 million payment owed to the government. (Anna Moneymaker / Getty Images)
Ahead of the holiday season, the Trump administration just let Southwest Airlines off the hook for the remaining government payments of a record-setting $140 million fine brought by the Department of Transportation after the airline’s software meltdown stranded two million customers over Christmas three years ago.
Late on Friday evening, the Department of Transportation posted a notice relieving Southwest from making its final $11 million payment for “significantly improving its on-time performance,” according to the department. The outstanding $11 million was nearly a third of the total $35 million fine that Southwest owed to the government, thirty times larger than any previous Transportation Department penalty for consumer-protection violations.
The rest of the $140 million penalty was either returned directly to customers harmed by the system-wide holiday meltdown in 2022 or set aside by the airline for future compensation to passengers, as mandated by the Transportation Department’s enforcement action.
“DOT believes that this approach is in the public interest,” reads the Friday notice, amending the original consent order struck by the Biden administration.
This move is just the latest rollback of Biden-era enforcement actions by Trump’s pick for secretary of transportation, Sean Duffy, who previously worked as a lobbyist for an airline trade association. In May, the department dropped a lawsuit against Southwest filed by the Biden administration for “chronically delayed flights” in violation of consumer protections and related laws.
Under Duffy, the department has also revoked Biden-era consumer-protection rules ensuring customers receive automatic compensation for canceled flights and extensive delays.
The enforcement rollbacks come amid extensive outside lobbying and pressure from the airline lobby. Airlines for America, the main industry association representing Southwest and other airlines, hired the influential MAGA-connected lobbying firm Ballard Partners at the start of the year to work on “aviation policy for domestic carriers.” White House chief of staff Susie Wiles and Attorney General Pam Bondi both worked as lobbyists for Ballard.
Shortly after the 2024 presidential election, Southwest Airlines CEO Bob Jordan said the Trump years would be “great for business” and that “the regulatory environment I hope is also more constructive for the industry.”
Southwest Airlines’ political action committee spent nearly $200,000 on Republican candidates and affiliated spending vehicles in the 2024 election cycle, slightly more than it contributed to Democrats. In 2020, Southwest contributed $125,655 to Donald Trump’s reelection campaign.
A fellow member of the Airlines for America trade group, United Airlines, donated $1 million to Trump’s inauguration committee this year.
Reuters was first to report on the public notice issued by the Transportation Department.