• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

US sues Southwest Airlines over chronically delayed flights

by January 15, 2025
written by January 15, 2025

By David Shepardson

WASHINGTON (Reuters) -President Joe Biden’s administration on Wednesday sued Southwest Airlines (NYSE:LUV), accusing the carrier of illegally operating multiple chronically delayed flights and disrupting passengers’ travel.

The U.S. Transportation Department said in its civil suit in U.S. District Court in Northern California that the Texas-based air carrier had operated unrealistic schedules and should be required to pay maximum civil penalties. The Justice Department joined in the suit.

USDOT said that for five months in 2022, Southwest operated two chronically delayed flights: one between Chicago Midway and Oakland, California, and another between Baltimore and Cleveland.

“Today’s action sends a message to all airlines that the department is prepared to go to court in order to enforce passenger protections,” Transportation Secretary Pete Buttigieg said.

The department also said it was fining Frontier Airlines $650,000 for operating multiple chronically delayed flights. Frontier, which declined to comment, will pay $325,000 and must pay the remainder if it operates any chronically delayed flights in the next three years.

Southwest said it was disappointed USDOT chose to sue “over two flights that occurred more than two years ago.” Southwest said that since 2009, the carrier has operated more than 20 million flights with no other violations.

“Any claim that these two flights represent an unrealistic schedule is simply not credible when compared with our performance over the past 15 years,” Southwest said. “In 2024, Southwest led the industry by completing more than 99% of its flights without cancellation.”

Under USDOT rules, a flight is chronically delayed if it is flown at least 10 times a month and arrives more than 30 minutes late at least 50% of the time.

It was unclear whether President-elect Donald Trump’s incoming administration would pursue the lawsuit.

Southwest in December 2023 agreed to provide $90 million in travel vouchers of $75 or more to passengers delayed at least three hours getting to final destinations because of an airline-caused issue or cancellation, part of a USDOT settlement over the carrier’s December 2022 holiday meltdown.

This month, USDOT imposed a $2 million penalty on JetBlue Airways (NASDAQ:JBLU) for operating four chronically delayed flights on domestic routes. It was first such fine on an airline for the prohibited scheduling practice.

JetBlue agreed to pay a $1 million fine and the remainder will go to compensate customers. JetBlue agreed to provide vouchers worth a minimum of $75 for passengers for future flight cancellations or delays of three hours or more caused by the airline within the next year.

USDOT said at various points in 2022 and 2023 JetBlue operated chronically delayed flights between New York and Raleigh-Durham, Fort Lauderdale and Orlando along with a flight between Fort Lauderdale and Windsor Locks, Connecticut.

USDOT last month sought comment on whether it should mandate cash compensation for lengthy delays or cancellations caused by airlines.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Mexico stocks higher at close of trade; S&P/BMV IPC up 0.77%
next post
Flowco Holdings Prices 17.8M Share IPO at $24/sh

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Netflix says its ad tier now has 94 million monthly active users

      May 15, 2025
    • Dick’s Sporting Goods to buy struggling Foot Locker for $2.4 billion

      May 15, 2025
    • YouTube will stream NFL Week 1 game in Brazil for free

      May 15, 2025
    • 5 new Uber features you should know — including a way to avoid surge pricing

      May 15, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (463)
    • Stock (6,426)

    Latest News

    • Netflix says its ad tier now has 94 million monthly active users
    • Dick’s Sporting Goods to buy struggling Foot Locker for $2.4 billion

    Popular News

    • UBS shifts airline stocks
    • McDonald’s Q3 earnings top estimates, revenue rises despite global challenges

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy