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DOT launches investigation into Delta due to ongoing cancellations and delays

Theo

The central theses

  • The U.S. Department of Transportation has launched an investigation into the numerous cancellations and delays at Delta Air Lines since the global technical outage last Friday.
  • Of the major airlines, Delta was hit hardest, having to cancel hundreds of flights on Tuesday, while rivals United and American Airlines canceled far fewer flights.
  • Transportation Secretary Pete Buttigieg said Tuesday that the agency is investigating whether Delta adequately protected its customers during the cancellations.

Delta Air Lines (DAL) is currently under official investigation by the Department of Transportation (DOT) for its response to Friday’s global technical outage that resulted in the cancellation and delay of thousands of flights in recent days.

Transportation Secretary Pete Buttigieg said Tuesday morning that the agency would investigate Delta “to ensure that the airline is complying with the law and taking care of its passengers during the ongoing, widespread disruptions.”

Impact on Delta

Of the major airlines, Delta remained the hardest hit, canceling over 460 flights as of 12:30 p.m. ET Tuesday, while rivals United (UAL) and American Airlines (AAL) canceled 45 and 38 flights, respectively, according to data from flight tracking website FlightAware.

The airline has said Friday’s outage, which was caused by an update from security software provider CrowdStrike (CRWD) and affected millions of devices running Microsoft’s (MSFT) Windows operating system, also affected one of Delta’s crew roster tracking tools. The problems have made it increasingly difficult for Delta to ensure full crew on rescheduled flights, the company said.

Delta has also extended offers through Tuesday to help customers rebook their trips for free as hundreds of flights continue to be canceled.

What could the DOT investigation accomplish?

Buttigieg said in his posts on X on Tuesday that travelers are encouraged to inform the U.S. Department of Transportation if they believe Delta has violated consumer protection laws.

In December, Southwest (LUV) was hit with a $140 million civil penalty for the airline’s handling of a 2022 winter storm that resulted in the cancellation of nearly 17,000 flights. The DOT found that Southwest failed to provide “adequate customer care” and there were delays in providing flight status updates and refunds to customers.

Buttigieg said in announcing the fine that the penalty, which is 30 times higher than any previously imposed by the U.S. Department of Transportation for consumer protection violations, should serve as a “warning” to all airlines that they must protect their passengers or face enforcement action from the U.S. Department of Transportation.

Delta’s share price was unchanged at $43.83 as of 12:30 p.m. ET on Tuesday.

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