Sunday, August 11, 2024 Delta Air Lines is facing a significant financial setback due to the widespread technology outage caused by CrowdStrike Holdings Inc. The airline estimates a loss of $380 million in revenue for the current quarter as a result of the incident, which led to the cancellation of thousands of flights in July. The majority of these losses stem from customer refunds and compensation provided in the form of cash and frequent flyer miles.
Additionally, Delta incurred $170 million in costs related to passenger reimbursements and crew expenses. In response to the outage, Delta has initiated legal action against both CrowdStrike and Microsoft Corp., claiming the incident caused a “catastrophic shutdown” of its systems.
The airline alleges that the disruption affected over 1.3 million customers and impacted critical applications essential for operations. CrowdStrike has disputed Delta’s claims, asserting that it offered timely assistance and support during the outage.
However, Delta maintains that the technology company’s response was inadequate. The US Department of Transportation has launched an investigation into Delta’s handling of the situation, with potential penalties for the airline if found in violation of regulations..
