Delta Air Lines Inc. (DAL Quick QuoteDAL - Free Report) had to call off over 400 flights and delay several due to a power outage in Atlanta on Aug 8. The outage affected the computer systems which disrupted the company’s operations worldwide. However, the company took prompt measures to keep customers updated on the matter and to assure speedy system recovery and resumption of flights. Delta’s computers were functional by the end of the day, however, flight cancellations and delays continued as the company strived to bring operations back to normal.

Delta’s Chief Operating Officer issued a statement apologizing for the delay and assuring customers that the company would be thoroughly investigating the matter. The company also declared that it would be issuing a $200 travel voucher to customers whose flights were delayed by over three hours or had been cancelled altogether.

Airlines with Similar Previous Incidents

Delta’s computer outage is not the only incident to have impacted operations in the airline industry. Around three weeks back, Southwest Airlines Co. (LUV Quick QuoteLUV - Free Report) experienced a computer router failure which disrupted operations for three days and resulted in cancellations of around 2000 flights and delays of approximately 7000 flights. Earlier in July, United Continental Holdings Inc. (UAL Quick QuoteUAL - Free Report) also suffered a router issue resulting in its flights being grounded worldwide for around two hours.

Delta currently carries a Zacks Rank #5 (Strong Sell). Although it beat earning estimates in the second quarter, the company continues to face lower demand and declining average ticket price. Most other companies in the airline space such as American Airlines Group Inc. (AAL Quick QuoteAAL - Free Report) and United Airlines are anticipating a decline in passenger revenues this year.

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