The daily business briefing: December 18, 2023

Southwest reaches settlement over 2022 holiday meltdown, falling mortgage rates revive homebuyers' hopes, and more

Southwest Airlines travelers
Southwest Airlines travelers wait for flight to board
(Image credit: Jason Fochtman / Houston Chronicle via Getty Images)

1. Southwest reaches settlement over 2022 holiday meltdown

Southwest Airlines has agreed to pay a $35 million fine as part of a $140 million settlement agreement over a December 2022 meltdown that stranded more than two million holiday travelers. The U.S. Department of Transportation said the assessment was the largest ever imposed on an airline for violating consumer protection laws, and would discourage Southwest from repeating the chaos. Most of the money from the settlement will help compensate passengers. "This penalty should put all airlines on notice to take every step possible to ensure that a meltdown like this never happens again," Transportation Secretary Pete Buttigieg said. Before the settlement, Southwest said refunds and lost ticket sales from the meltdown would cost the airline more than $1.1 billion. The Associated Press

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.