CrowdStrike IT outage sends shockwaves through airline industry: Loses millions as revenue, compensation uncertain? What you need to know?

Sunday, July 21, 2024 A recent global IT outage , linked to cybersecurity firm CrowdStrike , sent shockwaves through the airline industry, causing millions in lost revenue and significant disruption for travelers worldwide. Capital A Bhd (KL:CAPITALA) CEO, Tan Sri Tony Fernandes, highlighted the financial impact on airlines and the need for accountability from tech companies like CrowdStrike . While specific figures haven’t been released by official government or airline websites, Fernandes’ statement underscores the severity of the situation.

To provide a clearer picture of the potential financial losses, here’s a breakdown of the impact on various airline segments: Airline Segment Potential Impact Major International Carriers: (e.g. Emirates, Singapore Airlines, Lufthansa) Millions in lost revenue due to flight delays, cancellations, and rebooking costs.

Operational disruptions at major hubs could lead to additional losses. Low-Cost Carriers (e.g.

AirAsia, Ryanair, Spirit Airlines) Significant financial strain due to reliance on online booking systems and tight profit margins. Manual operations, while commendable as in AirAsia ‘s case, can lead to inefficiencies and delays, impacting revenue. Regional Airlines (e.

g. Flybe, Mesa Airlines, Air Canada Express) Potential losses due to dependence on major hubs affected by the outage. Delays and cancellations at connecting airports can have a domino effect on regional operations.

Lost Revenue Beyond Ticket Sales The finan.