Business
Delta CEO Says Airline Faces $500 Million in Costs from Global Tech Outage
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.
Read More: Why Delta Is Under Investigation
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.
Read More: CrowdStrike’s Role In the Microsoft IT Outage, Explained
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.
-
Business1h ago
The Surprising Resilience of Business Cards in a Digital-First Era
-
Business7h ago
Streamlining Import Compliance: How Import Duty Calculators Reduce Headaches
-
Business10h ago
To Do in RI: DREAMGIRLS film and live jazz under the stars in Providence, RI Black Film Festival
-
Business10h ago
ART! Art with Intention II: 15 artists from the National Assoc. of Women Artists at Gallery Sitka
-
Business13h ago
Scott Dylan: The Role of Founders in Shaping UK Start-Up Culture
-
Business1d ago
CPCA Gears Up for a Busy September with 5K and Wine Events
-
Business1d ago
Young Gen Zers are unemployable, lack workplace skills, work ethic: 1 in 4 hiring managers surveyed
-
Business1d ago
The ability to make tough calls, regardless of the situation – Mary T. O’Sullivan