secretstalks
Ed Bastian, CEO of Delta Air Lines, has revealed that the company will incur $500 million in expenses due to a global tech failure last week. This amount includes compensation for affected customers, hotel costs, and lost revenue resulting from the outage.
The disruption, which grounded flights, halted TV broadcasts, and impacted banks, hospitals, and retailers, was linked to a cybersecurity issue identified by CrowdStrike. The failure occurred due to a gap in an upgrade that allowed malicious data to spread across numerous client devices.
In response, CrowdStrike has outlined measures to prevent future occurrences, such as phased upgrades, user control over update timing, and better information about patches. However, while the company has offered Delta free consulting, it has not yet provided financial support.
Delta, the airline hardest hit by the outage, is facing scrutiny from the U.S. Department of Transportation. The investigation will cover not only the airline’s slow recovery but also customer service issues, including long wait times and allegations of unaccompanied children getting lost at airports. Transportation Secretary Pete Buttigieg has announced this review.
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