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British Airways' IT meltdown over May bank holiday cost the airline around £58m British Airways' IT meltdown over May bank holiday cost the airline around £58m
(35 minutes later)
An IT meltdown that grounded flights and scuppered thousands of customers’ travel plans in May, cost British Airway’s parent company about £58m pounds, less than the group’s chief executive originally feared. An IT meltdown that grounded flights and scuppered thousands of customers’ travel plans in May, cost British Airway’s parent company about £58m, less than the group’s chief executive originally feared.
International Consolidated Airlines Group on Friday said that the compensation fees and baggage claims related to “operational disruption” due to that massive power failure over the second May bank holiday had cost €65m. Originally, IAG chief executive Willie Walsh had reportedly estimated that the figure would be closer to £80m. International Consolidated Airlines Group on Friday said that the compensation fees and baggage claims related to “operational disruption”, due to that massive power failure over the second May bank holiday, had cost €65m. Originally, IAG chief executive Willie Walsh had reportedly estimated that the figure would be closer to £80m.
British Airways was forced to cancel around 800 flights from Gatwick and Heathrow as a result of the failure, stranding approximately 75,000 passengers.British Airways was forced to cancel around 800 flights from Gatwick and Heathrow as a result of the failure, stranding approximately 75,000 passengers.
IAG commissioned an independent review into the incident but reports in early June suggested that it had been caused by human error.IAG commissioned an independent review into the incident but reports in early June suggested that it had been caused by human error.
Several airlines have been hit by computer glitches over the last year, but analysts at the time said that the duration and scale of BA’s outage was unusual.Several airlines have been hit by computer glitches over the last year, but analysts at the time said that the duration and scale of BA’s outage was unusual.
In August last year, Delta Air Lines cancelled and delayed thousands of flights after an outage hit its computer systems. Earlier in May, Germany's Lufthansa and Air France suffered a global system outage which briefly prevented them from boarding passengers.In August last year, Delta Air Lines cancelled and delayed thousands of flights after an outage hit its computer systems. Earlier in May, Germany's Lufthansa and Air France suffered a global system outage which briefly prevented them from boarding passengers.
Separately on Friday, IAG reported operating profits before exceptional items had risen by 37 per cent to €973m (£870m) during the first half of the year.Separately on Friday, IAG reported operating profits before exceptional items had risen by 37 per cent to €973m (£870m) during the first half of the year.
The group also includes Aer Lingus, Iberia, Vueling and Level — the new low-cost, long-haul venture which began flying in June from Barcelona to Los Angeles, Oakland, Buenos Aires and Punta Cana in the Dominican Republic.The group also includes Aer Lingus, Iberia, Vueling and Level — the new low-cost, long-haul venture which began flying in June from Barcelona to Los Angeles, Oakland, Buenos Aires and Punta Cana in the Dominican Republic.