Delta Air Lines Must Face Lawsuit Related To CrowdStrike Outage

Delta Air Lines must face legal challenges over refund policies following a massive computer system failure, as a federal judge allows multiple claims to move forward in court.

Quick Takes

A federal judge has allowed breach-of-contract claims from five plaintiffs against Delta to proceed.
Another group can pursue claims under the Montreal Convention for flight cancellations and delays.
The July 2024 CrowdStrike computer outage led to Delta canceling approximately 7,000 flights.
Passengers claim Delta failed to provide automatic refunds and offered partial compensation only if they waived legal rights.
The outage cost Delta an estimated $550 million in lost revenue and added expenses.

Judge Allows Multiple Claims to Proceed Against Delta

US District Judge Mark Cohen has ruled that several claims against Delta Air Lines can move forward in a proposed class action lawsuit stemming from the massive July 2024 computer system outage. The judge determined that five of the nine plaintiffs can pursue breach of contract claims against the airline. Additionally, another group of five plaintiffs received approval to pursue claims under the Montreal Convention, an international treaty governing airline liability for delayed and canceled international flights. Judge Cohen did dismiss some claims, citing federal law preemption that limits certain types of actions against airlines.

The lawsuit centers on allegations that Delta failed to provide full refunds after thousands of flights were canceled or delayed due to a system-wide computer outage in July. According to court documents, Delta offered partial refunds only if passengers agreed to waive further legal claims against the airline. The case, filed as Bajra et al v Delta Air Lines in the US District Court, Northern District of Georgia, includes specific examples of passengers who suffered significant financial losses but received minimal compensation from the airline.

Delta must face passenger lawsuit over massive computer outage https://t.co/LWV8F16vKl pic.twitter.com/wR30SGoIEl

— Reuters Legal (@ReutersLegal) May 6, 2025

CrowdStrike Update Creates Massive Disruption

The system outage that triggered the lawsuit was caused by a flawed software update from cybersecurity firm CrowdStrike. According to court documents, the update affected more than 8 million Microsoft Windows-based computers worldwide. While many airlines experienced disruptions, Delta was particularly hard-hit, with flight cancellations and delays continuing for an extended period. In total, Delta canceled approximately 7,000 flights, creating chaos for travelers across its network and stranding many passengers.

Delta subsequently filed its own lawsuit against CrowdStrike, blaming the company for the faulty updates that led to the system failure. CrowdStrike has countered these claims, denying responsibility for Delta’s extended service disruptions. The US Department of Transportation also launched an investigation into Delta’s handling of the situation, particularly regarding customer service and refund policies during and after the incident.

Significant Financial Impact and Passenger Complaints

The computer outage had substantial financial consequences for both the airline and its passengers. Delta has estimated that the incident cost approximately $550 million in lost revenue and additional expenses, although the company did save about $50 million in fuel costs due to grounded aircraft. Despite this significant financial hit, Delta has indicated that the outage is not expected to substantially affect its full-year earnings, though it did impact third-quarter performance.

The lawsuit highlights specific passenger grievances that illustrate the scope of the disruption. One plaintiff reportedly missed a $10,000 cruise due to flight cancellations but received minimal compensation from Delta. Another passenger experienced a 15-day delay in receiving their luggage, causing significant inconvenience and additional expenses. These examples underscore the real-world consequences of the system failure for thousands of travelers who were left stranded, delayed, or otherwise inconvenienced.

Industry Vulnerability to IT Failures

This case highlights the increasing vulnerability of the airline industry to information technology failures. The Delta incident is just one of several recent examples of how IT outages can severely disrupt air travel operations. Other notable disruptions have affected Southwest Airlines, Hong Kong International Airport, and Los Angeles International Airport in recent years. As airlines become increasingly dependent on complex computer systems for everything from bookings to flight operations, their exposure to potential system failures continues to grow.

Neither Delta nor its legal representatives have commented publicly on Judge Cohen’s ruling allowing the case to proceed. The airline industry as a whole continues to face scrutiny regarding its passenger compensation practices during major system disruptions. This case could potentially establish important precedents for how airlines must respond to future technology-related service interruptions, particularly regarding their obligations to provide timely refunds and appropriate compensation to affected passengers.