How the Recent Global IT Outage Cost This Company $500 Million

Delta Air Lines CEO Ed Bastian announced that the airline’s costs resulting from a recent IT outage linked to CrowdStrike’s software glitch are projected to reach around $500 million.

This figure largely reflects expenses for accommodating passengers after the cancellation of about 4,000 flights due to a faulty security update that briefly disrupted Microsoft’s Windows systems earlier this month.

Originally estimated at $350 million, the costs surged as Delta incurred significant daily expenses for lodging stranded passengers. The update on the financial impact led to a slight increase in Delta’s stock value by 0.2%, as it provided clarity on the situation.

Bastian emphasized the necessity of seeking damages, criticizing the lack of thorough testing on the software that affected Delta’s operations. He noted, “When you have high-level access to Delta’s tech, proper testing is crucial to avoid mission-critical disruptions.”

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CrowdStrike has only offered consulting services without financial compensation. In response, Delta has enlisted renowned attorney David Boies, known for his role in the U.S. government’s antitrust case against Microsoft, to pursue legal action against both CrowdStrike and Microsoft.

Alexander Stefanov