Delta delays and cancellations cost company $500 million

  • 3 months ago
TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and how Delta lost a half a billion dollars.

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Transcript
00:00I'm Conway Gittins reporting from the New York Stock Exchange.
00:03Here's what we're watching on the street today.
00:05The Federal Reserve held interest rates steady and indicated that while a rate cut will be
00:09its next move, it wants to have, quote, greater confidence inflation is moving toward its
00:152% target before doing so.
00:17The decision comes amid signs the labor market continues to slow.
00:21Private payrolls rose by only 122,000 in July, which was the weakest hiring number since
00:27January, according to payroll company ADP.
00:31The report sets the stage for the labor department's deeper dive into the jobs market due on Friday.
00:37In other news, Delta Airlines says the massive computer meltdown that forced it to cancel
00:43over 6,000 flights blew a half-a-billion-dollar hole in its budget, and it wants that money
00:49back.
00:50Media reports say Delta has gone as far as hiring star attorney David Boies in an attempt
00:54to recoup losses from CrowdStrike and Microsoft.
00:58Delta was not alone as the botched security software upgrade by CrowdStrike knocked Microsoft
01:03computers offline globally, but it fared the worst.
01:07Delta CEO Ed Bastian is hopping mad at the way Delta has been treated by the two software
01:12companies which have been quiet about a potential lawsuit.
01:15Bastian, however, is not.
01:17He told CNBC, quote, we have to protect our shareholders, we have to protect our customers
01:23and our employees for the damage, not just the cost, but the reputational damage.
01:29Delta was forced to pay out tens of millions of dollars in hotel vouchers and other costs
01:34in order to compensate the estimated half-a-million passengers disrupted over the five-day period.
01:41That'll do it for your daily briefing from the New York Stock Exchange.
01:43I'm Conway Gittins with The Street.

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