Delta Air Lines Faces $500 Million in Losses After Global Technology Outage
Delta Air Lines is grappling with significant financial losses amounting to $500 million following a widespread technology outage that disrupted critical services, communications, and numerous businesses, as reported by Chief Executive Ed Bastian. Bastian revealed to CNBC that this staggering amount encompasses lost revenue, as well as “tens of millions of dollars per day in compensation and hotel expenses” over a five-day period.
CrowdStrike Identifies Bug as Root Cause of Global Technology Outage
Not long ago, cybersecurity firm CrowdStrike attributed a bug in an update as the trigger for a catastrophic global technology outage, which resulted in grounded flights, disrupted TV broadcasts, and impacted the operations of banks, hospitals, and retailers. CrowdStrike has outlined specific measures to prevent a similar incident from occurring in the future, such as implementing a staggered rollout of updates, providing customers with more control over update schedules, and offering enhanced transparency regarding planned updates.
Delta Air Lines Seeks Damages Amid Investigation into Recovery Response
Delta Air Lines bore the brunt of the outage within the aviation sector, leading to the cancellation of thousands of flights as vital systems succumbed to the disruption. The U.S. Department of Transportation is currently conducting an investigation into why Delta’s recovery efforts were slower compared to other airlines. Transportation Secretary Pete Buttigieg emphasized the scrutiny of Delta’s customer service practices, particularly addressing concerns about inadequate support lines and reports of unaccompanied minors stranded at airports. Bastian confirmed that Delta intends to pursue damages for the disruption, mentioning that CrowdStrike has not offered financial assistance thus far, apart from providing complimentary consultation services.
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