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Delta Faces $500M Hit, CrowdStrike Loses $19B After $5.4B Global IT Outage

Jul 25, 2024, 03:05 PM

Delta Air Lines and CrowdStrike are facing significant challenges following a global IT outage caused by a faulty update from CrowdStrike. The outage, which occurred last Friday, affected millions of Windows computers, leading to widespread disruptions in various sectors, including airlines, healthcare facilities, and 911 call centers. Delta Air Lines experienced thousands of flight cancellations and delays, resulting in a potential $500 million profit hit. The airline's CEO, Ed Bastian, stated that operations should return to normal by Thursday and assured that Delta will reimburse affected travelers for alternate flights and other expenses. CrowdStrike's reputation and stock value took a severe blow, with a $19 billion loss in stock value. The incident, attributed to a bug in the content validator, has prompted Microsoft to call for changes to Windows security and resilience. Analysts predict that the outage could lead to a mass migration away from CrowdStrike and worse retention and bookings in the coming quarters. The total estimated loss for Fortune 500 companies, excluding Microsoft, is around $5.4 billion. Cybersecurity experts emphasize the need for improved practices to prevent such incidents in the future.