Southwest Airlines (LUV) and the US government are engaged in talks over a potential resolution of a lawsuit filed in the waning days of the Biden administration accusing the company of "unrealistic scheduling and the holding out of chronically delayed flights," according to a Tuesday court filing by Department of Justice attorneys.
The filing extends the deadline for Southwest to respond to the complaint by 60 days to May 30.
LUV shares were 0.5% lower in recent premarket activity.