Southwest faces investigation over holiday travel disaster as it posts a $220M loss

Airline staff walks around a pile of suitcases near the baggage carousel at Los Angeles International Airport Tuesday, Dec. 27, 2022, after Southwest Airlines flights were canceled and delayed during a winter storm. (AP Photo/Damian Dovarganes)

The U.S. Department of Transportation is investigating the Southwest Airlines holiday travel debacle, which left thousands of travelers stranded for days. The investigation comes as the airline reported a $220 million loss last quarter and further losses in the first quarter.

Southwest canceled more than 16,700 flights over several days in late December. While a massive winter storm caused the initial cancellations, the company’s outdated software systems turned what should have been a normal problem into a snowballing disaster that lasted for days after other airlines had resumed their usual operations.

The department’s investigation will look into whether Southwest made unrealistic flight schedules, “which under federal law is considered an unfair and deceptive practice,” according to a department spokesperson.