Delta Air Lines ($DAL) Faces Investigation Amidst Major Flight Disruptions Due to Tech Outage
1 year ago

Delta Air Lines has confirmed that it is fully cooperating with a comprehensive investigation by the U.S. Department of Transportation (DOT) concerning the airline's management of extensive flight cancellations following a significant global technology outage that occurred last Friday. This outage led to a staggering 5,000 flight cancellations throughout the weekend and continued disruptions into the following week. As of Tuesday afternoon, Delta had canceled an additional 460 flights, with a reported 779 flights delayed on the same day, reflecting the ongoing operational challenges faced by the carrier.

The interruption has prompted Transportation Secretary Pete Buttigieg to launch a formal inquiry into the airline's response to passenger issues, especially in light of numerous customer complaints regarding service quality during this turbulent period. “It is essential to ensure that airlines are upholding their responsibilities to passengers amid ongoing disruptions,” Buttigieg stated via a post on X, previously known as Twitter.

He emphasized the importance of fairness and proper treatment for airline travelers, pledging to ensure that these rights are recognized and respected. Delta acknowledged the receipt of the DOT’s notice regarding the investigation and underscored its commitment to collaborating with governmental officials.

The airline's representatives informed MT Newswires that dedicated teams are actively engaged in addressing the needs of customers who have been adversely affected, particularly those impacted by the defective Windows update released by CrowdStrike. In a public communication via an X thread, Delta reiterated its stance that the cancellation of flights is a measure of last resort, undertaken only after considerable deliberation.

The airline has also expanded its travel waiver for travelers who had bookings from July 19-21, allowing them a one-time alteration to their travel plans without penalties. Furthermore, Delta is providing reimbursements for reasonable incurred expenses, including hotel, meal, and transportation costs stemming from the operational disruptions. On Monday, in a message shared with employees through a company intranet video, Delta's Chief Executive, Ed Bastian, acknowledged the severity of the situation, stating that it may take a few more days before the airline could confidently assert that the worst of the disruptions is behind it.

The message highlighted Delta's unwavering focus on revamping its operations and restoring customer trust. In financial terms, Delta shares recently traded at a price of $43.81, reflecting a slight decline of $0.02, or a 0.06% decrease from previous trading sessions. As the investigation progresses and the airline works to rectify its operations, it remains to be seen how these developments will impact its long-term reputation and customer loyalty..

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