Delta Air Lines (NYSE:DAL) CEO Ed Bastian said Wednesday that the extensive IT outage earlier this month, which left thousands of customers stranded, will cost the airline $500 million.
The outage, triggered by a failed software update from CrowdStrike (NASDAQ:CRWD), led to the cancellation of over 4,000 flights and disrupted thousands of Microsoft (NASDAQ:MSFT) systems globally.
While other airlines recovered more quickly, Delta's prolonged disruptions and response to customers have prompted an investigation by the U.S. Department of Transportation (DOT).
Speaking to CNBC’s “Squawk Box” from Paris, Bastian stated that the airline would seek damages for the disruptions. “We have no choice,” he added.
The flight disruptions were a rare breakdown for Delta, which prides itself on being a premium airline with top rankings in profitability and punctuality among U.S. carriers.
Delta and its regional partners were responsible for about two-thirds of all flight cancellations globally, according to the reports. In total, the carrier had to cancel over 6,000 flights.
U.S. Transportation Secretary Pete Buttigieg commented on the situation, asking "how it could be that days after the other airlines are back to normal, Delta is still canceling hundreds of flights.”
“We remain entirely focused on restoring our operation after cybersecurity vendor CrowdStrike’s faulty Windows update rendered IT systems across the globe inoperable,” Delta spokesperson stated.
“Across our operation, Delta teams are working tirelessly to care for and make it right for customers” affected by the disruptions.
Delta noted that over half of its technology systems are Windows-based, including a crucial tool for scheduling pilots and flight attendants.
Normal operations resumed on Thursday, July 25, and the airline is offering refunds to customers whose travel was affected.