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Research
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Gary Leff Chief Financial Officer | View from the Wing

Delta Air Lines experienced a significant operational failure following a glitch from CrowdStrike, resulting in more flight cancellations over five days than in all of 2018 and 2019 combined. The incident cost the airline approximately $500 million. Amidst the crisis, Delta's CEO was reported to have traveled to Paris for the Olympics, leaving employees and passengers to manage the aftermath.

Initially, Delta refused to cover costs for passengers flying on other airlines or prepaid hotels booked through Delta. Eventually, they agreed to reimburse some passengers who had purchased alternative tickets. However, many passengers unable to afford new tickets were left stranded.

In an effort to compensate its employees, Delta is now offering two positive space passes for any destination it serves. Typically, employees travel non-revenue and space-available for leisure purposes; this new offer allows them confirmed travel bookings, which could potentially displace paying customers.

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Aviation watchdog JonNYC first reported this development on social media. In communications with employees, Delta continued to attribute the disruption to "the CrowdStrike outage," avoiding direct responsibility.

The incident has highlighted challenges within Delta’s recovery processes during major outages. CEO Ed Bastian reportedly downplayed the situation when communicating with Transportation Secretary Pete Buttigieg, asserting that Delta did not need reminders of its customer obligations despite ongoing passenger disruptions.

To date, Delta has not provided a detailed plan on preventing similar future incidents. Questions remain about whether recent layoffs of IT staff may have contributed to their difficulties in managing the crisis.

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