Case Study: Southwest Airlines achieves rapid $250M payout to 200,000 customers in six weeks with PayPal (Hyperwallet)

Southwest Airlines used Hyperwallet to distribute $250 million to customers

Southwest Airlines, the Dallas-based carrier that flies more U.S. travelers nonstop than any other airline, faced a major operational disruption over the 2022 Christmas holiday that caused widespread cancellations and delays. While the airline could refund tickets purchased with cash or points using its existing systems, it needed a fast, scalable way to compensate hundreds of thousands of customers for their inconvenience.

Southwest implemented Hyperwallet, a PayPal mass-payments solution, working with PayPal to address compliance and tax concerns, and used it to send $250 million to about 200,000 customers within six weeks. The rapid payout helped restore customer trust, demonstrated Southwest’s commitment to service, and proved the solution effective for large-scale, time-sensitive compensation.

Southwest Airlines

Chris Priebe

Managing Director of Payments and Risk