Delta customers sue for refunds over flight cancellations

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why Delta customers are suing the airline.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:02Here's what we're watching on the street today.

00:04Wall Street is breathing a sigh of relief

00:07after a larger than expected drop in weekly jobless claims.

00:10New applications for jobless benefits

00:12fell to 233,000 for the week ended August 3rd,

00:16the biggest weekly decline in 11 months.

00:20This report is scaling back recession fears

00:22that erupted when the Labor Department

00:24announced the highest national unemployment rate since 2021.

00:29In other news, Delta is being slapped

00:32with a class action lawsuit over its handling

00:34of the global computer meltdown in July.

00:37Passengers claim Delta either outright refused refunds

00:41or attached too many conditions to returning payments.

00:45According to the lawsuit, in some cases,

00:47Delta required some refund-seeking passengers

00:50to sign a waiver releasing the airline from legal claims

00:54in exchange for the refund.

00:56In another allegation, Delta did not

00:58provide vouchers for food, hotel, and transportation

01:01as required by Department of Transportation rules.

01:04Passengers claim in the lawsuit that they were, quote,

01:07forced to spend thousands of dollars in unexpected expenses

01:11and decided to sue, quote, in order

01:13to secure funds for each and every similarly situated

01:17consumer Delta has wronged.

01:19For example, one plaintiff flying round trip

01:21between Denver and Amsterdam spent nearly $2,000

01:25due to Delta's cancellations.

01:27But when refund claims were submitted, quote,

01:29Delta offered plaintiff a $100 voucher

01:32to use towards a future flight with Delta.

01:36The class action lawsuit accusing Delta of being stingy

01:39is in stark contrast to Delta's claims

01:42that the software glitch caused by CrowdStrike

01:45cost it half a billion dollars in compensations

01:48and other costs.

01:49Delta has threatened to sue CrowdStrike and Microsoft.

01:52Both companies have shot back,

01:54claiming Delta's antiquated systems.

01:57That'll do it for your daily briefing

01:58from the New York Stock Exchange.

02:00I'm Conway Gittins with The Street.

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