CrowdStrike IT outage cost Delta Air Lines half a billion dollars

Delta Air Lines CEO Ed Bastian announced that a recent IT outage caused by a botched CrowdStrike software update, which took thousands of Microsoft systems offline, will cost the airline $500 million. This incident led to the cancellation of over 5,000 flights and affected thousands of customers.

The disruption required Delta to manually reset 40,000 servers and resulted in significant compensation costs, including daily expenses for customer accommodations over five days.

Delta’s flight crew management system struggled to cope with the disruptions, exacerbating the situation. The outage, similar to Southwest Airlines’ issues in late 2022, highlighted the vulnerability of airlines to failures in critical technology platforms. While other airlines recovered faster, Delta’s prolonged disruptions prompted an investigation by the U.S. Department of Transportation.

Bastian, speaking from Paris, stated that Delta will seek damages from CrowdStrike and Microsoft, emphasising the necessity of thorough testing for critical systems. Delta has engaged attorney David Boies to pursue compensation. So far, CrowdStrike has only offered consulting advice and no financial support. The airline is committed to protecting its shareholders, customers, and brand reputation from the fallout of the incident.