The U.S. Department of Transportation has decided to forgo part of a penalty levied against Southwest Airlines after the airline was forced to cancel thousands of flights during a severe winter storm in 2022.

In 2023, the Biden administration negotiated a settlement with Southwest, resulting in a $140 million civil penalty. At the time, officials noted that this was the most substantial fine ever imposed on an airline for breaching consumer protection regulations.

While most of the funds were allocated to passenger compensation, Southwest was also required to pay $35 million to the U.S. Treasury. The airline has already made two payments of $12 million, one in 2024 and another earlier this year. However, on Friday, the Transportation Department decided to waive the remaining $11 million payment, initially due by January 31, 2026.

The department acknowledged Southwest’s efforts to enhance its punctuality and its investments in improving network operations as reasons for the waiver.

In a statement, the Department of Transportation emphasized that this decision encourages airlines to enhance their operational capabilities and resilience, benefiting consumers. “This credit framework ensures that the investments made by the airline translate into public advantages instead of merely resulting in a financial penalty for the government,” the department explained.

The fine stemmed from a winter storm in December 2022 that paralyzed Southwest’s operations in Denver and Chicago and then snowballed when a crew-rescheduling system couldn’t keep up with the chaos. Ultimately the airline canceled 17,000 flights and stranded more than 2 million travelers.

The Biden administration determined that Southwest had violated the law by failing to help customers who were stranded in airports and hotels, leaving many of them to scramble for other flights. Many who called the airline’s overwhelmed customer service center got busy signals or were stuck on hold for hours.

Even before the settlement, the nation’s fourth-biggest airline by revenue said the meltdown cost it more than $1.1 billion in refunds and reimbursements, extra costs and lost ticket sales over several months.