Delta CEO: Company Suing Microsoft and CrowdStrike After $500M Loss

Delta Air Lines is suing Microsoft and CrowdStrike following a significant IT outage attributed to a problematic software update from CrowdStrike, which resulted in a $500 million loss for the airline. CEO Ed Bastian disclosed the financial impact during an interview on CNBC, noting that the incident led to the cancellation of over 5,000 flights. Although the issue has been resolved, Delta faced substantial costs, including tens of millions of dollars daily in compensation and hotel accommodations for affected customers. Bastian indicated that Delta's recovery was slower compared to other airlines, prompting an investigation by the U.S. Department of Transportation. He emphasized that the company feels compelled to pursue legal action against CrowdStrike and Microsoft due to the severity of the incident. In the week following the outage, Delta reported fewer than 100 flight cancellations out of approximately 30,000 flights, indicating a return to normal operations.