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Delta Air Lines to seek compensation over cyber outage, CNBC reports

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July 29, 2024 5:19 PM EDT

FILE PHOTO: Airline passengers wait in line at the Delta, KLM, and Air France ticketing counters after flights were grounded worldwide due to a tech outage caused by an update to CrowdStrike's "Falcon Sensor" software which crashed Microsoft Windows syste

(Reuters) -Delta Air Lines has hired a law firm and will seek compensation from Microsoft and CrowdStrike over a global cyber outage earlier this month that disrupted flights around the world, CNBC reported on Monday.

The Atlanta-based airline has been the slowest among major U.S. carriers to recover following the tech failure that led to more than 2,200 flight cancellations on July 19.

Delta has canceled more than 6,000 flights so far, leaving hundreds of thousands of travelers stranded. Analysts estimate that the impact on its bottom line could be in the hundreds of millions of dollars.

"We are aware of the reporting, but have no knowledge of a lawsuit and have no further comment," a CrowdStrike spokesperson said.

Shares of the cybersecurity firm were down about 2% in after-hours trading.

Microsoft, Delta and law firm Boies Schiller Flexner did not immediately respond to Reuters requests for comment.

The U.S. Transportation Department announced last week it would open an investigation into Delta following the outage-led flight cancellations.

(Reporting by Akash Sriram and Ananta Agarwal in Bengaluru; Editing by Tasim Zahid and Devika Syamnath)


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