The class action lawsuit against Delta Air Lines alleges that the airline refused to give refunds to customers following a global technology outage last month, which resulted in roughly 7,000 canceled flights over five days. The lawsuit was filed on behalf of impacted customers who claim Delta ignored their requests for prompt refunds and did not provide vouchers for meals, hotels, and transportation. The plaintiffs seek refunds for all affected customers and accuse Delta of unjustly enriching itself at the expense of its customers.
Delta has not yet responded to the lawsuit but disclosed in a regulatory filing that it will spend $380 million on customer refunds and compensation related to the outage in the third quarter. The total expenses related to the incident are estimated to be around $170 million, with fuel expenses being $50 million lower due to the cancellations. The U.S. Department of Transportation is investigating why Delta struggled to recover from the outage compared to other airlines. Transportation Secretary Pete Buttigieg has expressed concern over Delta’s customer service issues, including long lines for assistance and reports of unaccompanied minors being stranded at airports.
Microsoft and cybersecurity software firm CrowdStrike have both denied blame for the outage and are preparing to defend themselves against Delta’s claims. Delta CEO Ed Bastian has announced plans to pursue legal action against both companies to recover damages totaling at least $500 million. Delta has emphasized its investment in reliable service, including billions of dollars in IT expenditures since 2016, but has declined to provide further comment on the situation. Both CrowdStrike and Microsoft claim that Delta rejected their offers to assist in recovering from the outage, with Microsoft’s CEO allegedly reaching out to Bastian via email without receiving a response.
The ongoing dispute between Delta and the technology companies highlights the complex nature of modern airline operations and the potential consequences of technology failures in the industry. Delta’s response to the outage, including its handling of customer refunds and communication with technology providers, is under scrutiny from both the legal system and regulatory authorities. The outcome of the class action lawsuit and Delta’s pursuit of damages from Microsoft and CrowdStrike could have significant implications for the airline’s financial stability and reputation in the industry. Amidst these challenges, Delta continues to emphasize its commitment to providing reliable service and investing in its IT infrastructure to prevent future disruptions.
