US investigates December flight cancellations at Southwest

DALLAS (AP) — On Wednesday, the US Department of Transportation said it was investigating whether Southwest Airlines was cheating customers by knowingly scheduling more flights for the end of December than it could realistically handle.

The department said scheduling too many flights would be considered unfair and misleading practice under federal law.

“DOT is in the early stages of a thorough and comprehensive investigation into the Southwest Airlines holiday crash that has left millions of people trapped,” the department said in a statement.

The Department of Transportation added that it will hold Southwest liable if the airline fails to comply with federal rules on refunds and refunds to customers for canceled flights. The agency said it is “using its investigative and enforcement powers to the fullest” to protect consumers.

Southwest said its vacation schedule “has been carefully crafted” with a “clear work plan and sufficient staff.”

“Our systems and processes have been under strain while working to recover from several days of flight cancellations at 50 airports following an unprecedented storm,” Southwest said in a statement. The airline has pledged to cooperate with any government investigations and is “focused on learning from this event” and reducing the risk of a repeat.

Southwest canceled about 16,700 flights in the last 10 days of December. The crisis began with a winter storm, but Southwest continued to struggle long after most other airlines had recovered, in part because its crew planning system had become overwhelmed. Union officials said they have been warning the airline about the system for years, especially after similar but less serious flight disruptions in October 2021.

Dallas-based Southwest eventually resorted to cutting its schedule by about two-thirds to dump crews and planes, which it did successfully.

The airline hired consulting firm Oliver Wyman to look into what went wrong. CEO Robert Jordan said the company could accelerate spending on some technology upgrades as a result of the crisis, but he wants to complete the review first.

Southwest said this month that the cancellation would cost it up to $825 million in lost profits and higher costs, including employee bonuses and reimbursement to customers for hotels and alternative flights. As a result, the company is expected to post a fourth-quarter loss when it announces results on Thursday.

The airline is also dealing with damage to its customer service reputation. Analysts believe some customers may avoid Southwest for a short while, although airlines typically recover quickly from other service disruptions.

Senate Commerce, Science, and Transportation Committee Chair Maria Cantwell, Washington, has vowed to hold hearings on violations like the one in the Southwest.