Delta Airlines says $380 million in lost revenue in chaos after CrowdStrike outage

Delta Airlines says $380 million in lost revenue in chaos after CrowdStrike outage: Delta said Thursday about last month’s CrowdStrike outage and the subsequent mass cancellation of flights has cost the airline about $550 million, and reiterated that it is seeking damages from both the company and Microsoft. Delta Airlines says $380 million in lost revenue in chaos after CrowdStrike outage.

The Atlanta-based airline said in a securities filing that the financial impacts included a $380 million revenue loss for the quarter “primarily due to refunds to customers for canceled flights and the provision of compensation to customers in the form of cash and SkyMiles.”

Why Delta Airlines lost $380 million revenue?

The incident caused the cancellation of about 7,000 flights and resulted in $170 million in costs “related to the technology-related outage and subsequent resumption of operations,” the airline said, adding that the canceled flights will likely cause fuel costs to rise by $50 million.

Delta Air Lines is struggling more than its competitors to recover from a July 19 power outage that took millions of Windows-based computers offline around the world. The disruption occurred at the height of the summer travel season and stranded thousands of Delta customers, an unusual occurrence for an airline that promotes itself as a luxury carrier with a top reputation for reliability. “A disruption of this length and magnitude is unacceptable, and our customers and employees deserve better,” CEO Ed Bastian said in the filing. “Since the incident, our employees have worked hard to return our operations to an industry-leading position consistent with the level of performance our customers expect from Delta.”

Delta’s cancellations in the days following the outage exceeded the total for all of 2019. The U.S. Department of Transportation announced last month that it was investigating Delta’s response to the outage and flight cancellations.

CrowdStrike said in a statement Thursday that Delta “continues to spread misleading statements” and that the company’s chief security officer was “in direct contact” with Delta’s chief information security officer “to provide and provide information within hours of the incident.” support”.

Delta lawyer David Boies said in a letter to CrowdStrike lawyers on Thursday that 1.3 million customers were affected by the outage and that 37,000 of Delta’s computers were down.

CrowdStrike and Microsoft lawyers fired back earlier this week, saying they had offered Delta assistance. Microsoft suggested Wednesday that Delta has underinvested in its technology compared to its competitors.

“If CrowdStrike truly wants to avoid a lawsuit from Delta, CrowdStrike must take true responsibility for its actions and compensate Delta for the serious damage it has caused to Delta’s business, reputation and goodwill,” Boyes said in a letter to CrowdStrike on Thursday.

He said about 60% of Delta’s “mission-critical applications” and its data depend on Microsoft and CrowdStrike, adding that the disruption required “significant human intervention by experienced flight crew professionals to guide Delta employees and aircraft to the correct locations and resume normal, safe operations.”  Follow my Facebook Profile Here!

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