AAirlines

Southwest launches compensation program for flight delays

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Southwest Airlines said it had launched a compensation program for flight delays as part of a $140 million U.S. Department of Transportation settlement over the carrier’s meltdown in December 2022, that resulted in 16,900 flight cancellations and stranded 2 million passengers.

Southwest in December 2023 agreed over three years 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, and to start the program by April 30.

The airline said on Monday it had quietly launched the program on April 16 and has already heard from a few thousand customers seeking vouchers.

→ Southwest Airlines plans customer experience enhancements and modernization of brand elements

The delay compensation program is part of the Biden administration’s aggressive efforts to get tough on airlines as it aims to require new passenger compensation. Vouchers will be awarded “upon request,” Southwest said.

Southwest CEO Bob Jordan said in December the $30 million in vouchers annually was “the right number” to commit to given its operational performance, Reuters reported.

Asked if Southwest would end the program after three years, Jordan said consumer programs “rarely change or go away.”

Rival U.S. airlines have not put in place similar programs and do not yet face a mandate to do so.

Most carriers – including Southwest – voluntarily committed in August 2022 to provide hotels, meals and ground transportation for airline-caused delays or cancellations but resisted providing cash compensation as is required in the European Union.

Plataforma Informativa de Aviación Comercial líder en América Latina.

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