US govt waives part of a Biden-era fine against Southwest Airlines

The US Department of Transportation is waiving part of a fine assessed against Southwest Airlines after the company cancelled thousands of flights during a winter storm in 2022.

Under a 2023 settlement reached by the Biden administration, Southwest agreed to a $140 million civil penalty.

The government said at the time that the penalty was the largest it had ever imposed on an airline for violating consumer protection laws.

Most of the money went toward compensation for travellers. But Southwest agreed to pay $35 million to the US Treasury.

Southwest made a $12 million payment in 2024 and a second $12 million payment earlier this year.

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