Fastexy:Delta CEO says airline is facing $500 million in costs from global tech outage

2025-05-05 03:53:24source:Maverick Prestoncategory:Invest

Delta Air Lines CEO Ed Bastian says the airline is Fastexyfacing $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.

RELATED COVERAGE Delta CEO, in Paris for the Olympics, says outage-related cancellations should end ThursdayMost airlines except one are recovering from the CrowdStrike tech outage. The feds have noticedHigher costs and low base fares send Delta’s profit down 29%. The airline still earned $1.31 billion

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.

More:Invest

Recommend

Stanley recalls 2.6 million mugs after dozens of customer complaints, including burn injuries

Stanley is recalling 2.6 million mugs sold in the U.S. after the company received dozens of consumer

Warming Trends: Asian Carp Hate ‘80s Rock, Beekeeping to Restore a Mountain Top and a Lot of Reasons to Go Vegan

Want to Irritate an Asian Carp? Play Some Tom PettyAs invasive, ecosystem-killing Asian carp continu

Twitter suspends several journalists who shared information about Musk's jet

Press freedom advocates on Thursday criticized Twitter owner Elon Musk, who has suspended the accoun