Delta Class Action Claims Airline ‘Outright Refused’ to Refund Passengers After July Software Outage

Delta Air Lines faces a proposed class action lawsuit over its alleged refusal to fully refund consumers after thousands of flights were canceled or significantly impacted as a result of last month’s technology outage.

The 29-page Delta lawsuit claims the airline has not only defied its own terms and the promises it made to customers but violated Department of Transportation (DOT) regulations in the aftermath of the July 19 outage, which occurred when a faulty automatic update to software developed by cybersecurity tech company CrowdStrike caused millions of computers using Microsoft Windows to crash.

In the days following the outage, Delta reportedly pledged to offer impacted customers refunds upon request, travel credits, meal vouchers, hotel accommodations, out-of-pocket expense reimbursement and more, the suit relays. However, when affected passengers sought refunds for their canceled or delayed flights, the airline ignored or “outright refused” their requests, the case alleges.

As the complaint tells it, Delta has provided passengers with e-credits and travel vouchers as compensation but has purportedly “made no effort” to issue cash refunds, as required by federal law. In addition, the filing charges that the airline has refused to provide impacted customers with the promised accommodations, including meal, hotel and ground transportation vouchers—and in many cases, passengers have been barred by Delta from accessing their belongings, the lawsuit claims.

As a result, affected Delta customers were allegedly forced to pay thousands in unexpected costs for hotels, food, rental cars, flights with other airlines and other related expenses.

According to the breach of contract lawsuit, Delta’s reimbursement offers are “only a fraction of what passengers are entitled to.”

CrowdStrike outage causes “grave inconvenience” for Delta customers, case says

The July 19 CrowdStrike outage, which affected roughly 8.5 million Windows devices and damaged countless businesses and organizations across the globe, “severely crippled” airlines and airports in particular, the suit says. Per the case, Delta and other airlines, which utilize Microsoft Windows products for scheduling and other basic travel operations, were forced to resort to manual procedures such as checking passengers in on paper rather than through the customary cloud-based online systems, dramatically increasing processing times.

The outage resulted in widespread delays and flight cancellations globally, with Delta reporting more than 4,500 canceled flights between July 19 and July 21, 2024, the complaint says.

While nearly every other airline seemed to recover by July 21, Delta continued to delay and cancel flights through July 31, almost two weeks after the software crash, the filing shares. The lawsuit contends that the slow recovery, which Delta apparently blamed on CrowdStrike and Microsoft, left passengers “stranded in airports across the nation for days at a time.”

According to the suit, Delta customers “felt the overall brunt of this catastrophic event” as they were left to shoulder thousands in “unexpected expenses” while the airline failed to issue cash refunds and provide promised accommodations.   

According to the suit, Delta’s conduct flies in the face of DOT regulations, which mandate prompt, automatic refunds—including any ancillary fees—when an airline cancels or significantly changes a flight, regardless of the reason. The DOT also requires that customers be informed of their right to a refund before an airline makes an offer of travel credits, vouchers, accommodations or other compensation in lieu of a cash refund, the case adds.

Moreover, the filing takes issue with a waiver Delta has allegedly pushed on affected customers who accept its reimbursement offers. The suit contends that the “unconscionable” waiver, which releases the airline of all legal claims passengers may have against it, violates DOT regulations because it deprives consumers of their ability to enforce their legal rights—specifically, their right to a refund.

The case shares that the DOT has opened an investigation into Delta’s conduct in the aftermath of the CrowdStrike outage.

Who is covered by the Delta refund lawsuit?

The Delta Air Lines lawsuit looks to represent anyone in the United States who purchased airline tickets through Delta or bought tickets for flights on the airline to, from or within the country and sought to cancel their flights, or had their flights canceled by the defendant, between July 19 and July 31, 2024.

Delta owes me a flight refund. How do I join the lawsuit?

If you believe you are entitled to a refund from Delta, there’s nothing you need to do right now to join or sign up for the class action lawsuit. Typically, it’s only if and when a lawsuit reaches a settlement that class members—that is, people covered by the deal—need to take action. This normally involves submitting a claim form online or by mail.

Remember, it can take months or even years for a class action lawsuit to be resolved, so be sure to check ClassAction.org often for updates and stay informed by signing up for ClassAction.org’s free weekly newsletter.

Are you owed unclaimed settlement money? Check out our class action rebates page full of open class action settlements.