Southwest Airlines expects the cancellation of 16,700 flights over the holidays to cost them up to $825 million though the exact amount depends on how much passengers seek reimbursement for after having to find other means of travel – and how much Southwest actually approves in claims.
While the Department of Transportation is pressuring Southwest not just to provide the refunds, but also to do so quickly (noting that credit card payments must be refunded within 7 days), the sheer volume of requests is taking time to work through and also invariably means that some passengers get stuck in a Kafkaesque bureaucracy.