Delta Requests Compensation for Canceled Flights Due to Outage

Delta Air Lines is grappling with significant financial repercussions following a major IT outage that led to over 5,000 flight cancellations last month. CEO Ed Bastian estimated the total cost of the disruptions, which occurred during a peak travel period, at approximately $500 million, factoring in customer compensation. The outage, attributed to a flawed software update, not only affected Delta but also had widespread implications across various sectors, including banking and healthcare. In a recent development, CrowdStrike, the cybersecurity firm involved, has pushed back against Delta's claims of responsibility. Michael Carlinsky, CrowdStrike's lawyer, stated that Delta had declined offers for on-site assistance during the crisis. He criticized Delta's legal threats, suggesting they misrepresented CrowdStrike's role in the incident. Carlinsky emphasized that CrowdStrike's CEO had reached out to Bastian to provide help but received no acknowledgment. The fallout from the outage has also impacted CrowdStrike's stock, which has plummeted by over 36% since the incident. The company argues that it acted responsibly and transparently in response to the situation, contrasting its approach with Delta's handling of the crisis. Carlinsky warned that if Delta continues its litigation path, it will need to justify its actions to the public and shareholders, especially given CrowdStrike's proactive response. As of now, Delta has not publicly addressed the allegations made in CrowdStrike's letter, leaving the situation unresolved and raising questions about accountability in the tech and airline industries.