Delta Air Lines Faces Class Action Lawsuit Over Refund Refusals After Global Technology Outage

Delta’s Customers Allege Unfair Practices

Delta Air Lines is embroiled in a class action lawsuit stemming from a global technology outage last month that left thousands of flights canceled. The lawsuit, filed in the U.S. District Court Northern District of Georgia Atlanta Division, alleges that Delta refused or ignored requests for refunds and other compensation from affected passengers.

The complaint alleges that Delta’s actions were “unfair, unlawful, and unconscionable” and resulted in the airline “unjustly enriching itself 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’s Response

Delta has not yet responded to a request for comment on the lawsuit. However, in a regulatory filing, the carrier said it will spend $380 million in the third quarter on customer refunds and compensation related to the outage. Other expenses total an estimated $170 million, but quarterly fuel expense is estimated to be $50 million lower due to the cancelations.

Delta CEO Ed Bastian has previously said that the global technology outage that started with a faulty upgrade from CrowdStrike to machines running on Microsoft Windows cost the airline $500 million. Bastian raised the threat of legal action against CrowdStrike and Microsoft, claiming that the outage was caused by their software and services.

Government Investigation

The U.S. Department of Transportation is investigating why Delta failed to recover as quickly as other airlines from the outage. Transportation Secretary Pete Buttigieg said last month that the department would also examine Delta’s customer service, including “unacceptable” lines for assistance and reports that unaccompanied minors were stranded at airports.

Delta Blames Microsoft and CrowdStrike

Delta has blamed Microsoft and cybersecurity software firm CrowdStrike for the outage, which it claims caused several thousand canceled flights. Microsoft has denied responsibility, saying that Delta’s key IT system is probably serviced by other technology companies, not Microsoft Windows.

CrowdStrike has also disputed Delta’s claims and said that Delta had turned down its offers to help the airline recover from the outage last month. Microsoft’s lawyer said CEO Satya Nadella emailed Bastian during the outage, but the Delta CEO never replied.

Delta’s Legal Challenges

Delta faces not only the class action lawsuit but also potential legal action from Microsoft and CrowdStrike. Both companies have denied Delta’s claims and have indicated that they will fight back against the airline’s allegations.

The outcome of these legal challenges remains to be seen. However, the事態 surrounding the Delta outage has shed light on the importance of reliable technology and customer service in the airline industry.