Delta's flight cancellations were not caused by CrowdStrike, according to the cybersecurity company.

Delta's flight cancellations were not caused by CrowdStrike, according to the cybersecurity company.
Delta's flight cancellations were not caused by CrowdStrike, according to the cybersecurity company.
  • Delta rejected CrowdStrike's offer of onsite assistance following the outage.
  • Last week, Delta CEO Ed Bastian estimated that the mass cancellations following the outage cost the company approximately $500 million. Meanwhile, CrowdStrike's lawyer claims that the company's liability is limited to less than $10 million.
  • Over 5,000 flights were canceled by Delta following the outage, and it took longer for them to recover than their competitors.

On Sunday, it was reported that the airline had rejected onsite help during the last month's massive outage, which resulted in thousands of flight cancellations.

Delta CEO Ed Bastian stated on CNBC's "Squawk Box" that the mass cancellations resulting from the outage, which happened during a peak travel time, cost the company approximately $500 million, including customer compensation. As a result, the airline has no choice but to pursue damages, he added.

On Friday, CrowdStrike was informed by the airline that it planned to pursue legal claims to recover its losses resulting from the outage, and had hired law firm Boies Schiller Flexner.

Michael Carlinsky, CrowdStrike lawyer and co-managing partner at Quinn Emanuel Urquhart & Sullivan, wrote to Delta's lawyer David Boies on Sunday that Delta's litigation threats were responsible for a misleading narrative that CrowdStrike was responsible for Delta's IT decisions and response to the outage.

George Kurtz, CEO of CrowdStrike, offered onsite assistance to Bastian but did not receive a response.

Delta Air Lines CEO on CrowdStrike outage: Cost us half a billion dollars in five days

Delta canceled more flights than its rivals between July 19 and July 25 due to a software update issue.

CrowdStrike's stock has dropped over 36% since the outage that affected millions of computers using the company's software on Microsoft's Windows operating system. The outage impacted various sectors, including banking, healthcare, and air travel.

If Delta chooses this path, it will need to explain to the public, shareholders, and a jury why CrowdStrike accepted responsibility for its actions while Delta did not, in a swift, transparent, and constructive manner.

Delta must maintain a set of documents detailing its IT infrastructure, continuity plans, and past outage handling for the past five years, as stated.

CrowdStrike's contractual liability is limited to the single-digit millions, according to a letter. Delta did not respond to the letter on Sunday night. In a separate statement, CrowdStrike expressed hope that Delta would cooperate to resolve the issue.

"Bastian stated in Wednesday's "Squawk Box" interview that they did everything possible to take care of their customers during that time frame. He emphasized that if one has access to the Delta ecosystem's technology, they must test it before implementing it in a mission-critical 24/7 operation. He added that it is not acceptable to report a bug after the implementation."

CrowdStrike announced that it would roll out future software updates in stages, as stated in a post-incident report.

On July 30, a lawsuit was filed against CrowdStrike by its shareholders in a Texas federal court, seeking damages for losses in their investments.

CrowdStrike announces its fiscal second-quarter results on August 28. A Microsoft representative did not respond to a request for comment.

by Leslie Josephs

Business News