Delta Air Lines is currently facing a class action lawsuit after refusing to provide refunds to customers affected by a global technology outage that occurred last month. The airline, however, plans to go after the tech companies responsible for the incident. Delta was hit the hardest among airlines, resulting in the cancellation of approximately 7,000 flights over a span of five days. Key systems were severely impacted, leading to these cancellations.
The lawsuit was filed in the U.S. District Court Northern District of Georgia Atlanta Division on behalf of Delta customers who were affected by the outage. The customers claim that Delta either refused or ignored their requests for prompt refunds for canceled or delayed flights. In addition, the complaint states that Delta failed to provide meal, hotel, and ground transportation vouchers to all affected passengers. The airline continues to ignore or refuse reimbursement requests for unexpected expenses incurred by customers.
The lawsuit alleges that Delta’s actions led to the unjust enrichment of the airline at the expense of its customers. The plaintiffs are seeking refunds for all Delta customers whose flights were canceled or significantly affected due to the outage. Delta, based in Atlanta, has not yet provided a comment on the matter. However, the carrier revealed in a regulatory filing that it plans to spend $380 million in the third quarter on customer refunds and compensation related to the outage. Other expenses are estimated to total $170 million, but the cancelations are expected to result in a $50 million reduction in quarterly fuel expenses.
The U.S. Department of Transportation is conducting an investigation into why Delta was unable to recover as quickly as other airlines following the outage. Transportation Secretary Pete Buttigieg expressed concerns about Delta’s customer service, including long lines for assistance and reports of unaccompanied minors being stranded at airports. These issues will also be examined by the department.
Microsoft recently announced its collaboration with cybersecurity software firm CrowdStrike in fighting back against Delta’s accusations. Delta blames both companies for the thousands of canceled flights that occurred as a result of the July outage. However, a lawyer for Microsoft clarified that Delta’s key IT system is likely serviced by other technology companies, not Microsoft Windows.
Delta CEO Ed Bastian previously stated that the global technology outage, which started with a faulty upgrade from CrowdStrike to machines running on Microsoft Windows, cost the airline $500 million. Bastian raised the possibility of legal action, and in Thursday’s filing, he confirmed that Delta is pursuing legal claims against CrowdStrike and Microsoft to recover damages totaling at least $500 million.
Delta has emphasized its history of investing in reliable service, including significant expenditures in IT since 2016 and substantial annual IT costs. The airline declined to provide further comment on the matter. Both CrowdStrike and Microsoft have disputed Delta’s claims, with both companies stating that Delta turned down their offers to assist in the recovery process. Microsoft’s CEO, Satya Nadella, allegedly emailed Bastian during the outage, but the Delta CEO never responded.
In conclusion, Delta Air Lines is facing a class action lawsuit for its refusal to provide refunds to customers affected by a global technology outage. The airline plans to pursue legal action against the tech companies it believes are responsible for the incident. The U.S. Department of Transportation is conducting an investigation into Delta’s slow recovery and customer service issues. Microsoft and CrowdStrike have denied Delta’s accusations and claim they offered assistance, which was declined by the airline. Delta’s CEO confirmed the pursuit of legal claims against both companies to recover damages. Delta emphasizes its commitment to investing in reliable service but has chosen not to provide further comment on the matter.
