Delta’s third quarter earnings revealed just how badly the company was affected by July’s CrowdStrike meltdown.
Transcript:
Remy Blaire: I’m Remy Blaire reporting from the New York Stock Exchange. Here’s what we’re watching today on TheStreet.
Stocks are looking to pick up where they left off on Wednesday after the Dow and S&P 500 closed at record highs.
Wall Street is digesting the latest Consumer Price Index report which saw inflation cool once again in September, hitting a three-year low. Inflation now sits at 2.4% – a touch higher than economists predictions of 2.3%. The Federal Reserve’s target inflation number is 2%. The report paves the way for the Fed to again lower interest rates in November.
A Delta Airlines plane sits on the runway. Delta Airplane Lead KL 021323
Delta customers detail ‘disastrous’ CrowdStrike chaos in lawsuit
In other headlines – we now finally know the real cost of Delta’s DAL July service meltdown. The good news is the airline beat Wall Street’s revenue estimates and reported a profitable quarter. However, Delta’s $971 million in adjusted income was 26% lower from this time a year ago. The company also missed its target on earnings per share.
In July, a worldwide software glitch stemming from cybersecurity firm CrowdStrike forced all major carriers to cancel flights. Delta canceled more than 7,000 flights over a one-week period – and claims the outage blew a half-a-billion dollar hole in its budget.
While most airlines were up and running after a couple of days, Delta struggled to get back on track following the outage. CrowdStrike says the airline’s antiquated systems were to blame, while Delta places the blame squarely on the cybersecurity company.
Delta continues to seek compensation from CrowdStrike, with CEO Ed Bastian telling CNBC “The havoc that was created deserves, in my opinion, to be fully compensated for. This matter is now in the hands of our attorneys. We hope that we’ll see a resolution but we keep all of our options open.”
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Remy Blaire with TheStreet.
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