Delta CEO says CrowdStrike outage cost airline half a billion dollars
CrowdStrike outage stemmed from a faulty software update
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Delta CEO Ed Bastian said Wednesday that the massive CrowdStrike tech outage that disrupted operations cost the airline $500 million.
Bastian pegged the negative impact that the carrier faced at "half a billion dollars in five days."
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"We’re not looking to wipe them out, but we’re looking to make certain that we get compensated however they decide to for what they cost us," he said of CrowdStrike during an appearance on CNBC.
People looking for missing bags wait in line to speak with Delta Air Lines baggage in the Delta baggage claim area at Los Angeles International Airport in Los Angeles on July 24. (Patrick T. Fallon/AFP via Getty Images / Getty Images)
He linked the $500 million hit to both lost revenue and compensation the carrier doled out to "take care of our customers" during the disruptions.
CrowdStrike only offered "free consulting advice to help us," Bastian also said.
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The CrowdStrike outage, which started on July 19 with a faulty software update to Windows systems, caused thousands of Delta flight cancellations. The carrier has been "up for over a week," according to Bastian, after its operations took multiple days to recover.
A source confirmed to FOX Business on Monday that Delta has turned to attorney David Boies, chairman of Boies Schiller Flexner, to pursue possible damages. That news was first reported by CNBC.
Delta CEO Ed Bastian at the Hope Global Forums annual meeting in Atlanta on Dec. 11, 2023. (Dustin Chambers/Bloomberg via Getty Images / Getty Images)
In response to Bastian’s Wednesday remarks, a CrowdStrike spokesperson said, "We are aware of the reporting, but have no knowledge of a lawsuit and have no further comment."
The Delta CEO said during his CNBC interview that the airline has to "protect" its shareholders, customers and employees "for the damage not just to the cost of it, but to the brand, the reputational damage and the physical challenges."
The CrowdStrike outage also impacted many other companies in various sectors worldwide.
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The cybersecurity company said on its website that it "began working with customers and partners to bring systems online as quickly as possible, initially through manual remediation" and later via "automated techniques." It also sent out teams to help customers.
The CrowdStrike offices in Sunnyvale, California, on July 19. (Benjamin Fanjoy/Bloomberg via Getty Images / Getty Images)
"Nearly all impacted systems have been restored, and our team continues to collaborate with customers and partners to help ensure the complete recovery of any remaining affected systems," the company’s Frequently Asked Questions page said.
FOX Business' Breck Dumas contributed to this report.