• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

CrowdStrike IT outage: Delta Air Lines says it faced losses of up to 500 M, will seek damages

by July 31, 2024
written by July 31, 2024

Delta Air Lines faces a significant financial setback following an IT outage caused by a faulty CrowdStrike update earlier in July, with estimated losses reaching $500 million.

Delta’s CEO Ed Bastian announced the financial impact and emphasized the company’s intention to seek damages for the disruptions that grounded thousands of planes and caused widespread passenger chaos.

Extent of the CrowdStrike IT outage

The IT outage, which stemmed from a botched CrowdStrike update affecting approximately 8.5 million Windows devices globally, led to severe disruptions across various sectors.

The incident stranded airline passengers, interrupted hospital services, and disrupted broadcasters worldwide.

Delta, based in Atlanta, struggled more than other airlines to recover from the outage, prompting the US Department of Transportation to launch an investigation into the matter.

Delta was among several major US airlines, including United and American, that had to ground all their planes briefly when the disruption began on the morning of Friday, July 19.

While its rivals managed to restore their flight schedules over the weekend, Delta’s operational issues persisted into the following week, resulting in the cancellation of more than 6,000 flights.

This prolonged disruption significantly impacted Delta’s passengers and operations.

Regulatory and customer service challenges

The fallout from the IT outage extended beyond operational disruptions, drawing criticism for Delta’s customer service during the crisis.

Reports emerged of passengers waiting up to eight hours on the phone and facing long lines at airports.

These issues led to an investigation by the US Department of Transportation, with Transportation Secretary Pete Buttigieg highlighting the need for accountability.

“Every other airline got back on its feet within a day or two. Delta actually seemed to move in the opposite direction, which is why we are paying special attention. We are investigating with an eye towards accountability over that breakdown,” Buttigieg stated.

Broader industry impact and responses

The IT outage had far-reaching effects, with several European airlines also considering seeking damages for costs incurred during the disruption.

However, no concrete decisions have been made yet, according to sources familiar with the situation.

The global nature of the disruption underscores the critical role of robust IT infrastructure and the potential vulnerabilities that can arise from software updates.

CrowdStrike, the cybersecurity firm responsible for the faulty update, has pledged to improve its internal testing procedures to prevent similar incidents in the future.

The company’s CEO, George Kurtz, has been summoned by the US Congress subcommittee on cybersecurity and infrastructure protection to explain CrowdStrike’s role in what some have called the largest IT outage in history.

Lessons from the IT outage crisis

The incident highlights several key lessons for the airline industry and beyond.

The importance of robust IT systems, rapid response protocols, and effective customer service during crises cannot be overstated.

Delta’s extended recovery time compared to its rivals points to potential gaps in its crisis management strategies that will need addressing to restore consumer confidence and operational resilience.

As Delta seeks damages and works to mitigate the financial impact, the broader industry will be watching closely.

The outcomes of the investigations and the company’s efforts to enhance its IT systems and customer service protocols will likely shape industry standards and expectations for handling similar disruptions in the future.

Delta Air Lines’ $500 million loss from the IT outage caused by a faulty CrowdStrike update has underscored the significant risks associated with cybersecurity and IT infrastructure in the aviation industry.

With regulatory investigations underway and the potential for damages claims, the incident serves as a critical reminder of the need for robust IT systems and effective crisis management strategies.

The airline industry will be closely monitoring the developments and responses to this unprecedented disruption.

The post CrowdStrike IT outage: Delta Air Lines says it faced losses of up to 500 M, will seek damages appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Microsoft’s loss, Nvidia’s gain: Should investors worry about ever-increasing AI spending?
next post
Boeing’s woes deepen as aircraft manufacturer reports 90% rise in net loss in Q2

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Red state sheriff credits Trump’s border policies for already helping his small county: ‘Big impact’

    March 5, 2025
  • Trump admin ‘obliterated’ Iranian nuclear facilities with slimmed down NSC team, Rubio juggling multiple jobs

    June 24, 2025
  • DOGE plans to wind down consumer protection agency and fire nearly all staff, employees say

    March 3, 2025
  • Lawmakers eye ‘low hanging fruit’ for government efficiency after first DOGE Caucus meeting

    December 18, 2024
  • MIKE DAVIS: Eric Tung is Trump’s pick to bring sanity to the Ninth Circuit

    August 9, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,903)
  • Investing (634)
  • Stock (919)

Latest Posts

  • As Tesla shares struggle in 2025, short sellers pocket $11.5B in profits

    April 22, 2025
  • Harris lacked confidence, presidential demeanor in first TV interview: body language expert

    August 30, 2024
  • Trump reaffirms hard-line on Iran nuclear deal: ‘will not allow any enrichment of uranium’

    June 3, 2025

Recent Posts

  • Pro-lifers pounce on Fetterman for opposing ‘Born-Alive Abortion Survivors Protection Act’: ‘Infanticide’

    January 23, 2025
  • Mike Johnson replaces powerful Intelligence Committee chairman after Russian nuclear threat warning

    January 16, 2025
  • Trump ally floated as possible AG has harsh warning for Letitia James: ‘We will put your fat a– in prison’

    November 8, 2024

Editor’s Pick

  • The great airlift: how Apple ferried 1.5M iPhones from India to the US to beat Trump tariffs

    April 10, 2025
  • GOGL Stock Price Today: Up by 1.21% and Rising

    July 17, 2024
  • Gabbard says Biden admin ignored ‘highly inappropriate’ chats happening at national security agencies

    February 28, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock