CONSUMER

Delta CEO says airline is facing $500 million in costs from global tech outage

Jul 31, 2024, 11:27 AM

A Delta airplane takes off from Hartsfield-Jackson Atlanta International Airport in Atlanta, Nov. 2...

FILE - A Delta airplane takes off from Hartsfield-Jackson Atlanta International Airport in Atlanta, Nov. 22, 2022. Delta Air Lines said Tuesday, July 9, 2024, it has entered into a partnership with startup Riyadh Air with the goal of operating flights between the United States and Saudi Arabia. (AP Photo/Brynn Anderson)

(AP Photo/Brynn Anderson)

Delta Air Lines CEO Ed Bastian says the airline is facing $500 million in costs related to a global tech outage this month that disrupted emergency services, communications and thousands of businesses.

Speaking on CNBC, Bastian said Wednesday that the monetary amount represents lost revenue as well as “the tens of millions of dollars per day in compensation and hotels” for the five-day period.

US opens investigation into Delta after global tech meltdown leads to massive cancellations

A week ago, CrowdStrike blamed a bug in an update that allowed its cybersecurity systems to push bad data out to millions of customer computers, setting off the global tech outage that grounded flights, took TV broadcasts off air and disrupted banks, hospitals and retailers.

Cybersecurity company CrowdStrike also outlined measures it will take to prevent the problem from recurring, including staggering the rollout of updates, giving customers more control over when and where they occur, and providing more details about the updates that it plans.

Utah teen stuck in Miami by himself during worldwide IT outage that caused airport chaos

Among airlines, Delta was by far the hardest hit hard by the outage, having to cancel thousands of flights, because key systems were crippled by the incident.

The U.S. Department of Transportation is investigating why Delta failed to recover as quickly as other airlines. Transportation Secretary Pete Buttigieg said last week that the department would also examine Delta’s customer service, including “unacceptable” lines for assistance and reports that unaccompanied minors were stranded at airports.

Bastian said on CNBC that Delta will be seeking damages from the disruptions. CrowdStrike has not made any offers to help Delta financially so far, he added. It has offered free consulting advice.

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Delta CEO says airline is facing $500 million in costs from global tech outage