financetom
Technology
financetom
/
Technology
/
Delta rejects CrowdStrike criticism, sees $500 mln hit from cyber outage
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Delta rejects CrowdStrike criticism, sees $500 mln hit from cyber outage
Aug 8, 2024 1:39 PM

CHICAGO/WASHINGTON Aug 8 (Reuters) -

Delta Air Lines ( DAL ) said on Thursday it is pursuing

legal claims against CrowdStrike ( CRWD ) and Microsoft ( MSFT )

after

a global outage

last month disrupted travel plans of 1.3 million customers

and associated costs of at least $500 million.

A software update last month by global cybersecurity

firm CrowdStrike ( CRWD ) triggered system problems for Microsoft ( MSFT )

customers, including many airlines. The disruptions persisted at

Delta even as they subsided the next day at other major U.S.

carriers.

The Atlanta-based carrier canceled about 7,000 flights over

five days. It also faces an investigation from the U.S.

Transportation Department for the disruptions.

"An operational disruption of this length and magnitude is

unacceptable, and our customers and employees deserve better,"

Delta's CEO Ed Bastian said in an SEC filing on Thursday.

Both CrowdStrike ( CRWD ) and Microsoft ( MSFT ) have rejected Delta's

claim that they should be blamed for flight disruptions.

On Sunday,

CrowdStrike ( CRWD ) said it was

"highly disappointed by Delta's suggestion that CrowdStrike ( CRWD )

acted inappropriately and strongly rejects any allegation that

it was grossly negligent or committed misconduct."

But in a letter to CrowdStrike ( CRWD ), David Boies, who is

representing Delta, said the airline was "surprised and

disappointed by CrowdStrike's ( CRWD ) decision to try a 'blame

the victim' defense."

"There is no basis -- none -- to suggest that Delta was

in any way responsible for the faulty software that crashed

systems around the world, including Delta's," Boies wrote.

CrowdStrike ( CRWD ) did not immediately respond to a request for

comment.

Delta said direct revenue impact of the incident in the

current quarter is estimated to be $380 million, primarily

driven by refunding customers for canceled flights and providing

customer compensation in cash and frequent flyer miles.

The company also said it has additional expenses of $170

million associated with the technology-driven outage and

subsequent operational recovery, primarily due to customer

expense reimbursements and crew-related costs, but will have $50

million in lower fuel costs because of the flight cancellations.

Delta told U.S. lawmakers that CrowdStrike's ( CRWD ) faulty

update "impacted more than half of Delta computers, including

many of Delta's workstations at every airport in the Delta

network."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Australia's TPG Telecom to sell fibre, fixed assets to Vocus for $3.54 billion
Australia's TPG Telecom to sell fibre, fixed assets to Vocus for $3.54 billion
Oct 13, 2024
(Reuters) - TPG Telecom ( TPGTF ) will sell some of its non-mobile fibre infrastructure and fixed business assets to Macquarie-backed Vocus Group for A$5.25 billion ($3.54 billion) including debt, the telco said on Monday. The deal follows closely on the heels of TPG and Vocus resuming talks about the sale of TPG's non-mobile fibre assets, after halting a similar...
Ambani's Reliance lobbies India on satellite spectrum in new face-off with Musk
Ambani's Reliance lobbies India on satellite spectrum in new face-off with Musk
Oct 13, 2024
By Aditya Kalra and Aditi Shah NEW DELHI (Reuters) -Indian billionaire Mukesh Ambani's Reliance has argued that the telecom regulator incorrectly concluded that home satellite broadband spectrum should be allocated and not auctioned, a letter seen by Reuters shows, intensifying a face-off with Elon Musk's Starlink. The methodology of giving out spectrum for satellite services in India - a market...
TSMC third-quarter profit seen jumping 40% on strong AI chip demand
TSMC third-quarter profit seen jumping 40% on strong AI chip demand
Oct 13, 2024
TAIPEI (Reuters) - Taiwan Semiconductor Manufacturing Co ( TSM ), the main producer of advanced chips used in artificial intelligence applications, is expected to report a 40% leap in third-quarter profit on Thursday thanks to soaring demand. The world's largest contract chipmaker, whose customers include Apple ( AAPL ) and Nvidia ( NVDA ), has benefited from the surge towards...
Mosaic says fertilizer waste facility's water entered Tampa Bay after Hurricane Milton
Mosaic says fertilizer waste facility's water entered Tampa Bay after Hurricane Milton
Oct 11, 2024
CHICAGO, Oct 11 (Reuters) - Mosaic Co ( MOS ) said on Friday that water supporting the chemical company's storage of a waste byproduct from fertilizer manufacturing in Florida probably made its way into Tampa Bay following a downpour from Hurricane Milton. The discharge of possibly more than 17,500 gallons from Mosaic's facility in Riverview, a fast-growing Tampa suburb, raised...
Copyright 2023-2025 - www.financetom.com All Rights Reserved