Delta Air Lines recently announced that the CrowdStrike outage in July resulted in a significant financial loss of approximately $550 million. This loss included a $380 million revenue hit in the current quarter due to refunding customers for cancelled flights and providing compensation in the form of cash and SkyMiles. Additionally, the airline incurred a $170 million expense associated with the technology-driven outage and subsequent operational recovery. Delta estimated that its fuel bill would also be $50 million lower as a result of the cancelled flights.
Following the outage, Delta struggled to recover from the disruptions, which led to the cancellation of around 7,000 flights. This incident occurred during the peak summer travel season, leaving thousands of Delta customers stranded. The airline, known for its reliability and premium service, faced unprecedented challenges in restoring operations. The number of cancellations in the aftermath of the outage exceeded the total for the entire year of 2019.
In response to the outage, Delta’s CEO, Ed Bastian, emphasized the importance of delivering a high level of service to customers and employees. He acknowledged the impact of the disruption on 1.3 million customers and 37,000 Delta computers. Bastian expressed disappointment over the incident and stressed the need for improved performance to meet customer expectations.
Delta has announced its intention to pursue damages against CrowdStrike and Microsoft, holding them responsible for the outage. In a letter to CrowdStrike’s attorney, Delta’s lawyer, David Boies, demanded compensation for the damage caused to the airline’s business, reputation, and goodwill. CrowdStrike and Microsoft, in turn, defended their actions and offered assistance to Delta. Microsoft suggested that Delta should invest more in technology to prevent such incidents in the future.
The CrowdStrike outage had a significant financial and operational impact on Delta Air Lines, highlighting the importance of robust technology infrastructure and contingency plans in the aviation industry. The airline’s response to the incident and its pursuit of legal action against the responsible parties underscore its commitment to maintaining high standards of service and reliability for its customers.