Delta Air Lines CEO, Ed Bastian, expressed frustration towards cyber security firm CrowdStrike and software provider Microsoft for computer problems that led to a five-day service meltdown costing the airline $500 million. He criticized CrowdStrike for a flawed software update that caused widespread computer outages on July 19, impacting Delta and other companies. Bastian emphasized the importance of thorough testing for technology in a mission-critical operation like Delta’s, highlighting the severity of the situation.
The computer problems at Delta disrupted its crew tracking system, causing the airline to cancel about 30% of its schedule over five days and leaving half a million passengers stranded. While other airlines quickly resumed normal operations after the CrowdStrike outage, Delta struggled to re-book affected passengers and return their checked bags. Despite the significant losses, Delta has not filed a lawsuit against CrowdStrike or Microsoft, but has hired attorney David Boies’ law firm to pursue compensation from the companies, citing the need to protect shareholders, customers, and employees.
Delta’s financial losses from the service meltdown extended beyond lost revenue from canceled flights, as the airline also incurred expenses for compensating customers for hotels and other out-of-pocket costs. Bastian emphasized the need for compensation to cover not just the costs but also the reputational damage suffered by the airline. He clarified that the goal is not to bankrupt CrowdStrike or Microsoft, but to seek fair compensation for the losses incurred by Delta during the computer outage.
While Delta has not disclosed the amount of compensation sought from CrowdStrike and Microsoft, Bastian indicated that the damages could potentially reach $500 million. He stressed the importance of protecting Delta’s interests and ensuring accountability for the disruptions caused by the computer problems. Despite the challenges faced by the airline, Bastian remained focused on returning to normal operations and serving customers effectively, as Delta resumed its flight schedule and operations after the service meltdown.
Bastian’s criticism of CrowdStrike and Microsoft came as Delta worked towards resolving the aftermath of the computer problems and restoring its operations. He highlighted the reliance of airlines on technology for critical operations and the need for technology providers to ensure the reliability and security of their software updates. As Delta navigated the challenges posed by the service meltdown, Bastian emphasized the importance of holding the responsible parties accountable and seeking appropriate compensation for the damages suffered by the airline.
