Delta CEO Ed Bastian revealed the cost of its five-day service outage.
Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
The Federal Reserve held interest rates steady and indicated that while a rate cut will be its next move, it wants to have “greater confidence” inflation is moving toward its 2 percent target before doing so.
The decision comes amid signs the labor market continues to slow. Private payrolls rose by only 122,000 in July, which was the weakest hiring number since January, according to payroll company ADP. The report sets the stage for the Labor Department’s deeper dive into the jobs market due on Friday.
In other news: Delta Airlines says the massive computer meltdown that forced it to cancel over 6,000 flights blew a half-a-billion dollar hole in its budget. And it wants that money back.
Media reports say Delta has gone as far as hiring star attorney David Boies in attempt to recoup losses from CrowdStrike and Microsoft. Delta was not alone as the botched security software upgrade by CrowdStrike knocked Microsoft computers offline globally, but it fared the worst.
Delta CEO Ed Bastian is hopping mad at the way Delta has been treated by the two software companies, which have been quiet about a potential lawsuit. Bastian, however, is not. He told CNBC “We have to protect our shareholders, we have to protect our customers and our employees for the damage, not just the cost but the reputational damage.”
Delta was forced to pay out tens of millions of dollars in hotel vouchers and other costs in order to compensate the estimated half-a-million passengers disrupted over the five-day period.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I”m Conway Gittens with TheStreet.
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