Southwest Airlines has been fined $140 million by the U.S. Department of Transportation stemming from last year's holiday meltdown — a record fine. As part of the settlement, the government requires Southwest to create a $90 million fund for eligible Southwest passengers delayed by future travel disruptions between April 30, 2024, to April 29, 2027.
Here's what you need to know about when you qualify for the benefits and what you can do to protect yourself in the event of a trip delay with any airline.
Who qualifies for Southwest's future delay voucher
During its meltdown over the 2022 holidays, Southwest canceled over 16,000 flights and doled out over $600 million in refunds and reimbursem*nts to customers. On top of that, it gave 25,000 Southwest points to passengers affected by the cancellations.
The $90 million fund provides an additional avenue for compensation to future Southwest passengers if their travel plans are interrupted. Southwest is required to issue you a $75 voucher if your travel is impacted by anything within Southwest's control and you arrive at your destination three hours or more after your scheduled arrival time. These vouchers are valid for "future use on the airline," according to the DOT's announcement.
Southwest's current cancellation policy
Southwest's current standard flight cancellation policy doesn't have any change or cancellation fees. And you're eligible for a refund as long as you cancel at least 10 minutes before the scheduled departure time. If you book more expensive refundable fares, you can be reimbursed 100% of the cost to your original form of payment. For the cheaper non-refundable fares, you'll receive a 100% refund in the form of a Transferable Flight Credit, which can be used for a future flight or transferred (one time) to another Southwest Rapid Rewards member.
Credit cards with trip delay coverage
If your airline won't cover the additional costs you incur from a delay, you may be covered by your credit card's trip delay reimbursem*nt benefit. The Chase Sapphire Reserve® is a premium credit card with one of the most generous trip delay coverages you can get with a credit card. When you pay for travel with the card, you can be reimbursed up to $500 per ticket for additional expenses caused by an eligible delay. This benefit covers costs not paid for by the travel provider or other insurance including, lodging, meals, transportation and toiletries. An eligible delay is a delay of six hours or more or one that requires an overnight stay.
Chase Sapphire Reserve®
On Chase’s secure site
Rewards
Earn 5X total points on flights and 10X total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining & 1 point per $1 spent on all other purchases plus, 10X points on Lyft rides through March 2025
Welcome bonus
Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,125 toward travel when you redeem through Chase Travel℠.
Annual fee
$550
Intro APR
None
Regular APR
22.49% - 29.49% variable
Balance transfer fee
5%, minimum $5
Foreign transaction fee
None
Credit needed
Excellent
Terms apply.
Read our Chase Sapphire Reserve® review.
If you're interested in credit card travel insurance but would like a cheaper travel credit card, the Marriott Bonvoy Bold® Credit Card is a good choice. It has no annual fee and comes with trip delay reimbursem*nt coverage when your travel is delayed for 12+ hours or requires an overnight stay. You can be reimbursed up to $500 per ticket for reasonable expenses.
Marriott Bonvoy Bold® Credit Card
Learn More
Rewards
Earn up to 14X total points for every $1 spent at thousands of hotels participating in Marriott Bonvoy®. Learn more about additional benefits with the Marriott Bonvoy Bold® Credit Card.
Welcome bonus
30,000 Bonus Points after you spend $1,000 on purchases in the first 3 months from account opening.
Annual fee
$0
Intro APR
None
Regular APR
21.49% - 28.49% variable on purchases and balance transfers
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fee
None
Credit needed
Excellent/Good
Terms apply. Information about the Marriott Bonvoy Bold® Credit Card has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the card prior to publication.
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Bottom line
Southwest was fined $140 million by the U.S. DOT because of its 2022 meltdown which stranded millions of passengers over the holidays. With this fine, the airline is setting aside $90 million to reimburse Southwest passengers for future travel delays. If you'd like to have additional coverage that applies to any airline, consider paying for your flights with a credit card that has trip delay insurance.
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Read more
How to use a Southwest credit card sign-up bonus to earn the Companion Pass
Get up to $500 reimbursed when your trip is delayed with these credit cards
How does credit card travel insurance work?
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
