Outages Could Cost Delta $500 Million While Feds Demand Answers

 

Bloomberg reports the airline could take a hit of $500 million for the network meltdown, while a U.S. Senator is demanding answers from the airline for how they handled the situation.

 

Delta Cancels 52 Flights, Delays 695 as Demands for Answers Continue

The monetary figure comes from analysts at Citigroup and Melius Research. The two estimate that the hit on third quarter 2024 figures could cost Delta between $350 and $500 million in operating profit.

In a statement issued on July 24, Delta CEO Ed Bastian once again blamed CrowdStrike for the cancellations and delays. Attempting to empathize with customers, the airline head said he’s received letters from frustrated flyers and those praising the frontline workers for attempting to bring everyone to their final destination. He said that operations are expected to normalize by Thursday, July 25, 2024.

 

As of press time, FlightAware.com reports Delta cancelled only 52 flights for the day and delayed 695 flights.

 

In the meantime, both legislators and the U.S. Department of Transportation want answers from the Atlanta-based airline for the disruption. In a letter to Bastian sent by the Senate Committee on Commerce, Science, and Transportation, Washington Democrat Maria Cantwell warned her committee “will seek answers from the airline industry, in particular, about safeguarding its operations and ensuring redundancy to prevent future widespread outages as the global and national impacts on air travel and the flying public are far too important.”

 

The committee chair requested a written response from the airline by July 30, 2024.

 

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Source: frugal travel guy

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