Delta Air Lines CEO Ed Bastian has criticized cybersecurity firm CrowdStrike and software provider Microsoft for a software issue that led to a major service disruption, costing the airline an estimated $500 million.
Key Points:
- Service Outage: The disruption, caused by a flawed software update from CrowdStrike, affected Delta’s crew tracking system for five days, leading to the cancellation of about 30% of its flights and stranding approximately half a million passengers.
- CEO’s Statement: Bastian expressed frustration over the lack of support from CrowdStrike and Microsoft, stating they have not offered any compensation or assistance. He emphasized the critical nature of Delta’s operations and the need for reliable technology.
- Legal Action: Delta has not yet filed a lawsuit but has retained the law firm of David Boies to seek compensation. Bastian stressed the importance of protecting the airline’s shareholders, customers, and employees from both financial and reputational damage.
Financial Impact:
| Category | Details |
|---|---|
| Flights Canceled | Approximately 6,300 over five days |
| Passengers Affected | Estimated 500,000 stranded |
| Compensation Costs | Tens of millions in daily customer expenses |
| Total Estimated Loss | $500 million |
Response from Companies:
- CrowdStrike’s Position: A spokesperson stated they are aware of the issue but have not been informed of any lawsuit. CrowdStrike reported $3.7 billion in cash reserves and a $750 million credit line, indicating financial preparedness for potential legal claims.
- Microsoft’s Silence: Microsoft did not provide a comment on the situation.
Bastian shared his views during an interview from Paris, where he attended the Olympics, underscoring Delta’s role as a sponsor and the official airline of the US Olympic team. The incident highlights the challenges airlines face in maintaining operations amidst technological disruptions and the potential financial and reputational consequences of such outages.
