Investigation into Delta cancellations focuses on potentially misleading texts

But regulators have received reports that Delta passengers received messages last week saying if they chose not to rebook, they would get the ticket price back as a credit, said the person, who spoke on condition of anonymity to describe an ongoing investigation. Transportation Department officials contacted Delta on Saturday, outlining the laws and asking the airline to correct its messages, the person said.

Transportation Secretary Pete Buttigieg then raised the issue directly in a phone call Sunday with Ed Bastian, the airline’s chief executive, the person said. Buttigieg told Bastian the airline needed to update its communications to comply with the law.

Delta’s problems began on July 19 with a global IT outage related to security software CrowdStrike. While other airlines recovered quickly, the Atlanta-based carrier struggled with a crew management system throughout the weekend. The airline ultimately canceled more than 5,000 flights before returning to normal operations on Wednesday. About 500,000 people were affected, according to the Department of Transportation.

Delta said in a statement that the company is cooperating with the investigation and “takes our compliance obligations seriously.”

“In addition to safety, Delta’s top priority is taking care of our customers and our employees. We will continue to do so as we recover from the unprecedented impact of the outage caused by CrowdStrike on our operations,” the company said.

Buttigieg announced Tuesday that the agency had launched an investigation after receiving more than 3,000 complaints. Authorities have the power to impose fines if they ultimately conclude that Delta broke the law in handling the outage.

“There are many things that I am very concerned about. These include people who are stuck on hold for hours trying to get a new flight. People who have to sleep on the floor of airports. There are even reports of unaccompanied minors who are stuck in airports and cannot get a flight,” Buttigieg said at a press conference on Tuesday.

According to a memo officials sent to airlines and obtained by The Washington Post, the department began communicating with airlines on the morning of July 19 about their responsibilities to passengers affected by the disruptions. The memo said the department had determined that any disruptions were the responsibility of the airlines, triggering the right to refunds for passengers. The memo reminded airlines of their obligations if passengers demand their money back: “An immediate refund is due.”

Delta has said it had great difficulty getting its crew management system back up and running after the outages. Pilots and flight attendants were virtually lost in the airline’s system, triggering a wave of delays that continued into Tuesday. It is unclear why Delta encountered long-lasting problems while other airlines affected by the computer glitch quickly resumed operations.

Delta’s problems this week were similar to a collapse at Southwest Airlines during the 2022 Christmas holidays. The Department of Transportation launched an investigation into the problems and ultimately fined the airline $140 million.

That incident also prompted lawmakers to tighten passenger rights under an overhaul of the Aviation Act passed this year. That law allows airlines to offer an alternative to a refund, such as a voucher, but only if the offer includes a “clear and conspicuous” reference to passengers’ right to a refund.

But in one example of a message posted by a Delta customer on social media, the airline made no mention of refunds, writing: “If you choose not to rebook your trip, the value of your ticket will automatically be available as eCredit to use toward a future Delta ticket.”

Consumer advocate William McGee, a senior fellow at the American Economic Liberties Project, said his organization has also received reports that Delta has sent text messages informing travelers — including a coworker’s family member — that their flight had been canceled and offering them an e-credit. The message did not mention that the person could also receive a cash refund, which McGee said is misleading, especially because many travelers may not know they are entitled to a cash refund under current regulations.

When his colleague asked what his family member should do, McGee was clear. He replied in all caps, “Tell her not to take it. She’s entitled to a cash refund. And now I wonder how many other people got that too and just pushed the button?”

Democratic lawmakers who helped draft the passenger rights bill sent letters to Bastian this week questioning Delta’s response to the cancellations. Senator Maria Cantwell (D-Wash.), chair of the committee that oversees airlines, wrote Tuesday that Delta does not appear to provide adequate information about refunds on its website. Democratic leaders of the House Transportation Committee referenced the new law in a letter Thursday and asked Bastian how Delta refunds passengers and reimburses them for any extra charges.

Lori Aratani contributed to this report.