Delta Air Lines CEO Ed Bastian Reveals $500 Million Loss Due to IT Outage
San Francisco – Delta Air Lines’ CEO Ed Bastian disclosed that the airline’s recent massive IT outage, which began earlier this month, has cost the company approximately $500 million. This substantial figure encompasses not only lost revenue but also the significant expenses associated with compensation and accommodations, which amounted to tens of millions of dollars daily over the five-day period of disruption, according to a report by Xinhua News Agency.
The outage, which saw the cancellation of over 5,000 flights by July 25, was triggered by a problematic update to CrowdStrike software. The incident led to a global shutdown of thousands of Microsoft systems, exacerbating the situation for Delta. The scale of the disruption was unusual for Delta, and the airline’s slower recovery compared to other carriers has prompted an investigation by the U.S. Department of Transportation.
Bastian noted that Delta’s systems, which manage the scheduling and matching of flight crews to aircraft, were unable to keep pace with the necessary adjustments following the IT failure. This led to further operational challenges and delays.
In light of the financial impact and operational disruption, Delta Air Lines intends to seek damages for the losses incurred. Bastian emphasized to CNBC that the airline “has no choice” but to pursue financial restitution to safeguard the interests of its shareholders, customers, and employees, while also addressing the reputational damage sustained.
CrowdStrike, the cybersecurity firm responsible for the problematic software update, has yet to offer any financial assistance to Delta. A spokesperson for CrowdStrike stated that the company had “no knowledge of a lawsuit and had no further comment” on the matter. Microsoft has not yet responded to inquiries regarding the incident, as reported by CNBC.
Bastian underscored the necessity of protecting Delta’s stakeholders from the compounded effects of the outage, including both the direct financial costs and the broader impact on the company’s brand reputation.
