Last updated: 08:50 AM ET, Wed September 07 2016

Delta Computer Outage Reportedly Cost Airline $100 Million

Airlines & Airports | Delta Air Lines | Donald Wood | September 07, 2016

Delta Computer Outage Reportedly Cost Airline $100 Million

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Last week, Delta Air Lines announced that the company lost $100 million in revenue due to a massive worldwide computer outage which took place in August.

According to The Associated Press, Delta officials said that the cancellation of 2,300 flights was also a key factor in the revenue per mile figure falling last month. The computer outage on Aug. 8 was caused by a fire at the headquarters of the airline, which resulted in equipment failure.

The equipment failure caused massive cancellations and delays over a three-day period.

In addition, Delta reported that passenger revenue for every seat flown one mile dropped 9.5 percent in August, and officials have attributed two percent of that decline to the computer outage. The company was on pace to see its numbers drop anyway due to an increase in flights and a lack of demand, but the equipment failure didn’t help matters.

Computer outages have been a major concern for airlines recently. In July, issues with Southwest Airlines computers cost the company $54 million in lost revenue and extra costs. On Tuesday, British Airways also dealt with a worldwide computer outage.

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