Delta Air Lines CEO Ed Bastian says the airline is facing $500 million in costs related to a global tech outage this month that disrupted emergency services, communications and thousands of businesses.
Speaking on CNBC, Bastian said Wednesday that the monetary amount represents lost revenue as well as “the tens of millions of dollars per day in compensation and hotels” for the five-day period.
A week ago, CrowdStrike blamed a bug in an update that allowed its cybersecurity systems to push bad data out to millions of customer computers, setting off the global tech outage that grounded flights, took TV broadcasts off air and disrupted banks, hospitals and retailers.
Cybersecurity company CrowdStrike also outlined measures it will take to prevent the problem from recurring, including staggering the rollout of updates, giving customers more control over when and where they occur, and providing more details about the updates that it plans.
Among airlines, Delta was by far the hardest hit hard by the outage, having to cancel thousands of flights, because key systems were crippled by the incident.
The U.S. Department of Transportation is investigating why Delta failed to recover as quickly as other airlines. Transportation Secretary Pete Buttigieg said last week that the department would also examine Delta’s customer service, including “unacceptable” lines for assistance and reports that unaccompanied minors were stranded at airports.
Bastian said on CNBC that Delta will be seeking damages from the disruptions. CrowdStrike has not made any offers to help Delta financially so far, he added. It has offered free consulting advice.
Delta CEO Ed Bastian recently revealed that the airline is facing a staggering $500 million in costs as a result of a global tech outage that occurred earlier this year. The outage, which occurred in August, resulted in thousands of flight cancellations and delays, leaving passengers stranded and frustrated.
The tech outage was caused by a power outage at Delta’s data center in Atlanta, which disrupted the airline’s operations worldwide. The outage lasted for several hours, causing chaos and confusion for both passengers and employees.
In a recent interview, Bastian stated that the $500 million in costs includes lost revenue, compensation for affected passengers, and expenses related to fixing the issue and preventing future outages. He also acknowledged that the outage was a major setback for the airline and apologized to customers for the inconvenience caused.
Delta has since implemented measures to prevent similar outages in the future, including upgrading its technology infrastructure and improving its backup systems. The airline has also offered compensation to affected passengers, including refunds, vouchers, and frequent flyer miles.
Despite the significant financial impact of the outage, Delta remains committed to providing reliable and efficient service to its customers. The airline has a strong track record of customer satisfaction and has consistently ranked among the top airlines in terms of on-time performance and customer service.
Moving forward, Delta is focused on regaining the trust of its customers and ensuring that such a tech outage does not happen again. The airline is investing in new technology and training for its employees to prevent future disruptions and maintain its reputation as a leading global airline.
In conclusion, the $500 million cost incurred by Delta as a result of the global tech outage serves as a stark reminder of the importance of investing in robust technology infrastructure and disaster recovery plans. While the outage was a major setback for the airline, Delta is taking proactive steps to prevent similar incidents in the future and ensure that its customers continue to receive the high-quality service they expect.
