CrowdStrike outage resulted in a $380 million revenue loss for Delta.

CrowdStrike outage resulted in a $380 million revenue loss for Delta.
CrowdStrike outage resulted in a $380 million revenue loss for Delta.
  • Delta Air Lines reported that the CrowdStrike outage and resulting flight cancellations incurred a financial loss of approximately $550 million last month.
  • The current quarter has resulted in a $380 million revenue hit and an associated $170 million expense.
  • Microsoft and CrowdStrike will face legal action from Delta to recover the expenses incurred due to the incident.

Last month's outage and subsequent mass flight cancellations cost the airline some $550 million, and it reiterated that it is pursuing legal claims against the company as well as.

The Atlanta-based airline reported a $380 million revenue hit in the current quarter due to refunding customers for cancelled flights and providing customer compensation in the form of cash and SkyMiles.

The cancellation of 7,000 flights due to a technology-driven outage resulted in a $170 million expense for the airline, and its fuel bill is expected to be $50 million lower as a result of the scrubbed flights.

Delta faced greater difficulties than its rivals in restoring service following the July 19 outage, which affected millions of Windows-based computers worldwide. This happened during the peak of the summer travel season, resulting in thousands of Delta customers being stranded, an unusual occurrence for a carrier known for its premium service and high reliability.

"Our customers and employees deserve better than an operational disruption of this length and magnitude, which is unacceptable," CEO Ed Bastian stated in the filing. "Since the incident, Delta has returned the operation to an industry-leading position that meets the level of performance our customers expect."

by Leslie Josephs

Business News