Delta CEO Offers Free Flights After $500 Million IT Failure
- Delta Airlines CEO Ed Bastian revealed that a recent IT outage cost the airline approximately $500 million.
- In response, he announced that the airline would provide free flights to customers affected by the outage.
- This gesture aims to regain customer trust and mitigate the impact of the significant financial loss.
Delta Air Lines CEO Ed Bastian announced on Friday that the airline will provide employees with two free travel passes as a gesture of gratitude for their efforts during significant operational disruptions last month. These disruptions, caused by a problematic software update from CrowdStrike, resulted in the cancellation of over 5,000 flights between July 19 and July 24, surpassing the total cancellations for all of 2019, according to FlightAware. Bastian acknowledged the challenges faced by both staff and customers, describing the situation as "unacceptable." In a memo to employees, Bastian expressed his remorse for the difficulties experienced during the disruptions, which he termed a "humbling moment" for the company. He praised the dedication of Delta's flight attendants, noting that over 4,000 of them took on more than 6,100 additional trips during this period, earning extra pay for their efforts. The airline's commitment to its employees was highlighted, although the Delta organizing committee of the Association of Flight Attendants-CWA criticized the travel passes as insufficient. The U.S. Department of Transportation is currently investigating the disruptions, with Secretary Pete Buttigieg emphasizing the need for accountability in the airline industry. In response to the incident, Delta has initiated legal action against CrowdStrike and Microsoft to recover losses incurred during the outage, enlisting the law firm Boies Schiller Flexner for this purpose. Microsoft has not commented on the matter.