Delta Air Lines: Software Glitch to Cost Delta $500 Million Plus; Fair Value Estimate Unaffected

Delta Air Lines announced it will pursue lawsuits against CrowdStrike and Microsoft to recover more than $500 million of damages it attributes to the software outage that began July 19. The outage affected Delta's computer systems for more than five days, causing the airline to cancel 7,000 flights. Other airlines recovered more swiftly, and Delta's premium reputation seems to have taken on some tarnish, including attracting a customer lawsuit, though we do not think its reputation will likely suffer long term.