Southwest Airlines is now obligated to provide passengers with a transferable voucher worth at least $75 if their flight is canceled or delayed for three or more hours beyond the scheduled arrival time, as per the U.S. Department of Transportation (DOT). This compensation initiative comes in response to the DOT's enforcement action following the stranding of millions of passengers during the 2022 holiday season by the airline.
U.S. Transportation Secretary Pete Buttigieg commented on this development, "After the 2022 holiday meltdown, our department held Southwest Airlines accountable—and now the airline is required to compensate passengers for lengthy delays and cancellations that they cause. We're pleased to bring these benefits to passengers, and further show the flying public that the Biden-Harris Administration has their back."
According to a news release from DOT, Southwest must offer compensation under certain conditions: if passengers arrived at their destination three or more hours later than planned; if the delay or cancellation was due to factors within Southwest's control such as maintenance or staffing issues; and if a flight was canceled or delayed within seven days of its scheduled departure date. However, passengers will not be eligible for compensation if a delay was caused by factors beyond the airline’s control such as adverse weather conditions.
Buttigieg played a key role in launching the Airline Customer Service Dashboard in 2022. This tool alerts airline passengers about their eligibility for compensation due to an issue created by airlines and outlines rules that DOT can enforce, according to the news release. The DOT will oversee Southwest’s compensation program to ensure that passengers receive monetary relief. Every May for the next three years, Southwest will submit an annual report detailing voucher payments made to DOT.
Buttigieg reiterated passenger rights last week when he announced new regulations requiring airlines to provide automatic refunds of airline tickets and ancillary service fees when flights are canceled. He stated, "Passengers deserve to get their money back when an airline owes them - without headaches or haggling. Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers."
