Delta Air Lines expects $500 million in losses due to Microsoft technology outage
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Civil Aviation Resources Network, August 01, 2024: According to Reuters, Delta Air Lines CEO Ed Bastian said that the company will face a loss of $500 million due to global IT outages caused by technical failures of Microsoft and CrowdStrike.
Analysts expect that this may have an impact of hundreds of millions of dollars on the company's profits. Delta Air Lines has hired a law firm and is seeking compensation from Microsoft and CrowdStrike.
Bastian apologized to Delta Air Lines' customers and said that the airline relies heavily on the technical services of Microsoft and CrowdStrike and was hit hardest by the failure.
The U.S. Department of Transportation said last week that it had begun an investigation into Delta Air Lines' large-scale flight cancellations since July 19. Although other airlines have been able to resume normal operations, Delta Air Lines is still canceling hundreds of flights a day due to problems with related applications.