Delta Blames CrowdStrike for $500M Loss

Delta Air Lines has reported an anticipated loss of approximately $550 million due to a global outage linked to CrowdStrike last month, as detailed in a recent filing with the Securities and Exchange Commission (SEC). The Atlanta-based airline estimates a direct revenue impact of around $380 million for the current quarter, primarily attributed to customer refunds for canceled flights and compensation in cash and SkyMiles. Additionally, Delta expects to incur $170 million in losses from customer reimbursements and crew-related expenses. The outage, which occurred on July 19, disrupted operations across major airlines, but Delta experienced significant delays, remaining off schedule for nearly a week. This prompted a federal investigation into the incident. Delta's legal representatives have suggested that Microsoft, which provides software for Delta, may have failed to meet contractual obligations, alleging gross negligence related to the update that caused the outage. In response, Microsoft has denied responsibility for the incident, asserting that it did not cause the CrowdStrike outage and that it offered assistance to Delta at no cost. Microsoft’s legal counsel criticized Delta for not modernizing its IT infrastructure, which they claim has hindered operational efficiency compared to other airlines. CrowdStrike has also defended its actions, stating that its CEO contacted Delta's board member shortly after the incident, and its Chief Security Officer was in direct communication with Delta’s Chief Information Security Officer, offering support and information.