Delta faces US probe after numerous flight cancellations disrupt travel

The US Transportation Department said on Tuesday it is opening an investigation into Delta Air Lines (DAL.N), after the carrier canceled more than 5,000 flights since Friday as it struggles to recover from a global cyber outage, that snarled airlines worldwide.

While other carriers have been able to resume normal operations, Delta has continued to cancel hundreds of flights daily due to issues with its crew tracker application.

Since Friday Delta has been cancelling 30% or more of its flights daily through Monday, axing 469 flights on Tuesday, or 13% of its schedule as of 3:45 PM ET and delaying another 1061, or 30%, according to FlightAware, after cancelling 1,150 on Monday.

Transportation Secretary Pete Buttigieg said on Tuesday the investigation is to "ensure the airline is following the law and taking care of its passengers during continued widespread disruptions... Our department will leverage the full extent of our investigative and enforcement power to ensure the rights of Delta’s passengers are upheld."

Delta said it was in receipt of the USDOT notice of investigation and is fully cooperating. "Delta teams are working tirelessly to care for and make it right for customers impacted by delays and cancellations as we work to restore the reliable, on-time service they have come to expect from Delta," the airline said. Delta shares were down 0.5% in early trading.

Delta CEO Ed Bastian said Monday it would take the US carrier another couple of days before its operations recover. Since Friday, the carrier had canceled 4,000 flights as of Monday morning.

A software update by global cybersecurity firm CrowdStrike (CRWD.O), opens new tab triggered system problems for Microsoft (MSFT.O), opens new tab customers, including many airlines, on Friday.

Delta is widely respected for running a reliable operation. Analysts say its on-time performance in terms of arrivals and departures has helped the airline cement its position as a premium airline.

The issue has left customers fuming. Many complained they waited hours for assistance as the airline's helplines were overwhelmed. Some were forced to rent cars, driving hundreds of miles to get to destinations, while others said they would have to wait days for new flights.

The disruptions have also left the airline's pilots frustrated. In a letter to members, Delta's pilot union head Darren Hartmann said pilots have had trouble contacting the company, leaving them feeling "abandoned in the system."

Separately, US Senate Commerce Committee chair Maria Cantwell on Tuesday wrote to Delta CEO Bastian, saying she is concerned that the airline is not complying with passenger rights codified in a law that Congress passed in May.

"Delta should invest significant resources into its customer service operations to ensure that customers are made whole in short order," she wrote in the letter.

In December, Southwest Airlines (LUV.N), agreed to a record-setting $140 million civil penalty over the 2022 holiday meltdown that led to 16,900 flight cancellations and stranded 2 million passengers, resolving a USDOT investigation.