Delta Sees $500 Million Hit From Catastrophic System Outage

Carrier says it has hired the firm of attorney David Boies
Technology breakdown led to thousands of flight cancellations

Workers sort through luggage at the Delta baggage claim at Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia, US, on July 23.Photographer: Christian Monterrosa/Bloomberg

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By Mary Schlangenstein

July 31, 2024 at 12:04 PM UTC

Updated on

July 31, 2024 at 1:36 PM UTC

This article is for subscribers only.

Delta Air Lines Inc. is bracing for a $500 million negative impact from the technology breakdown this month that led to thousands of canceled flights and tarnished the carrier’s reputation.

The company revealed the financial assessment Wednesday in a statement, saying it has hired the law firm of prominent attorney David Boies. CNBC earlier reported that Delta plans to seek damages from the disruption, citing comments from Chief Executive Officer Ed Bastian.