Airlines in the US had the lowest cancellation rate in 10 years in 2023, according to the Department of Transportation. In 2023, there were 16.3 million flights and a cancellation rate below 1.2%, the lowest rate in a decade. According to the Transportation Security Administration, 2023 was also the busiest year for air travel ever.
Travel around Christmas and New Year’s was notably smooth. From Sunday, Dec. 17, 2023, to Monday, Jan. 1, 2024, the cancellation rate was just 0.8% despite a record number of passengers flying during the busy holiday season. The cancellation rate during that same period in 2022 was 8.2%.
Prior to the holiday travel season, the department announced a $140 million penalty against Southwest Airlines for failing passengers during the 2022 holiday meltdown. The action, which was in addition to over $600 million DOT already ensured was refunded to passengers, requires Southwest to establish a $90 million compensation system for future passengers affected by significant delays and cancellations. The penalty — 30 times larger than any previous penalty against an airline for consumer protection violations — sent a signal to airlines to step up for their passengers ahead of one of the busiest holiday travel periods on record, according to a statement from DOT.
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