Delta Air Lines is facing a $500 million financial impact due to a global tech outage that disrupted services and businesses.
Delta CEO Ed Bastian told CNBC on Wednesday that this cost includes lost revenue and tens of millions of dollars per day for compensation and hotel expenses during the five-day disruption.
Driving the news: The tech outage was caused by a bug in an update from cybersecurity company CrowdStrike, which unintentionally affected millions of customer computers.
- Last week CrowdStrike outlined measures to prevent future incidents, such as staggering updates, giving customers more control, and providing detailed update information.
- Delta was hit the hardest by the outage and had to cancel thousands of flights.
State of play: The U.S. Department of Transportation is investigating Delta’s slow recovery and customer service during the incident, including reports of stranded unaccompanied minors.
- Delta plans to seek compensation for the disruptions, but CrowdStrike has not offered financial assistance yet, only providing free consulting advice.
