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Delta Air Lines says chaos caused by CrowdStrike outage cost $550 million | Real Time Headlines

On May 5, 2024, a Delta Air Lines Airbus A319-114 taxied at Los Angeles International Airport after arriving in Los Angeles, California from Las Vegas.

Kevin Carter | Getty Images

Delta Airlines Thursday said last month mass strike The outage and subsequent mass flight cancellations caused an estimated $550 million in losses and reiterated that efforts are underway to resolve the legal claims against the company and Microsoft.

The Atlanta-based airline said in a securities filing that the financial impact includes a $380 million decrease in revenue for the quarter, “primarily due to customer refunds for canceled flights and cash and SkyMiles program payments.” “Provide compensation to customers in the form of compensation.”

The airline said the incident, which canceled about 7,000 flights, also meant $170 million in costs “related to technology-driven outages and subsequent resumption of operations,” adding that its fuel costs were likely to rise as a result of the canceled flights. would be reduced by $50 million.

delta struggling The company was able to recover faster than its competitors after a July 19 outage knocked millions of Windows-based computers around the world offline. The disruption, which occurred during the peak summer travel season, left thousands of Delta passengers stranded and was a rare event for the airline that calls itself Delta Air Lines. Premium Carrier Gets top marks for reliability.

“An operational disruption of this length and magnitude is unacceptable, and our customers and employees deserve better,” Chief Executive Ed Bastian said in the filing. “Since the incident, our employees have restored operations to Industry leading position, consistent with the level of performance customers have come to expect from Delta Air Lines.”

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