Delta Air Lines Seeks Compensation Following the Recent Global IT Outage

The recent global IT outage has caused significant disruptions across various airlines and airports worldwide, with Delta Air Lines experiencing particularly severe consequences. The carrier was forced to cancel thousands of flights, leading to substantial financial losses and widespread customer dissatisfaction. In response, Delta Air Lines has engaged a prominent attorney to pursue compensation for the challenges it faced over the last week and a half.

Delta’s Legal Action for Compensation

Delta Air Lines is seeking to recover financial losses resulting from the IT outage on July 19. While multiple airlines were impacted by the technical malfunction, Delta’s operations were notably more affected. The airline has retained David Boies, a distinguished attorney known for handling high-profile cases, to seek damages from CrowdStrike and Microsoft. The incident, triggered by a faulty update from CrowdStrike, disrupted Microsoft systems globally on the specified date.

Although Delta Air Lines has not yet filed a formal lawsuit, it is reportedly aiming to secure compensation from the two tech companies. The airline’s financial burden includes issuing thousands of refunds, with estimated losses ranging between $350 million and $500 million.

Boies brings a wealth of experience to the case, having represented the US Government in a notable antitrust case against Microsoft, as well as working with high-profile clients such as Hollywood producer Harvey Weinstein and Theranos founder Elizabeth Holmes. The outcome of Delta’s legal maneuvering remains to be seen in the coming days.

The Extent of the IT Outage’s Impact

The global IT outage has caused a significant disruption for Delta Air Lines, leading to flight cancellations at an unprecedented scale—equivalent to almost a year’s worth of cancellations within a single weekend. The fallout from the outage sparked a wave of angry reactions from passengers on social media, prompting the US Department of Transportation to take notice.

Delta’s CEO, Ed Bastian, issued an apology for the disruptions and announced compensation packages for affected passengers. He explained that the airline’s extensive use of the compromised system, particularly one of their crew-tracking tools, severely impacted their ability to manage the high volume of changes necessitated by the outage.

Despite these efforts, passenger dissatisfaction persisted. Transportation Secretary Pete Buttigieg emphasized that Delta is responsible for protecting and fairly compensating its passengers. He stated,

“Delta must provide prompt refunds to consumers who choose not to take rebooking, free rebooking for those who do, and timely reimbursements for food and hotel stays to consumers affected by these delays and cancellations, as well as adequate customer service assistance.”

Future Implications and Legal Pursuits

The USDOT’s response came after receiving hundreds of complaints from passengers during the chaotic aftermath of the outage on July 19. As Delta now pursues legal recourse, it remains to be seen whether the airline will secure the desired compensation from CrowdStrike and Microsoft. The engagement of a high-profile attorney like David Boies signals Delta’s determination to address the significant financial and operational impact of the outage.

Youssef Yahya

Youssef Yahya is the CEO and Founder of Aviation for Aviators, a platform dedicated to the aviation industry. With over 3 years of experience as an aviation writer, Youssef is passionate about sharing his insights on aviation, entrepreneurship, and the broader business landscape. As a Teaching Assistant in Entrepreneurship at Nile University, he also nurtures the next generation of entrepreneurs. When he’s not exploring the skies or business ventures, you can find him saying, ‘Drag your coffee, and let’s talk aviation, entrepreneurship, and football.’

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