The Donald Trump administration has closed a federal investigation into Delta Air Lines'
Delta Cleared After Review of CrowdStrike Outage Response
On Monday, the U.S. Department of Transportation said it had concluded its review of Delta's response to the July 2024 technology meltdown without taking enforcement action, Reuters reported.
This spared the carrier from penalties despite widespread disruptions that affected more than 1.3 million travelers and cost the company an estimated $500 million.
The investigation was launched under the Joe Biden administration after Delta took significantly longer than other major U.S. carriers to recover from the global software outage triggered by cybersecurity firm CrowdStrike.
The disruption led to thousands of canceled flights and widespread travel delays across the airline's network.
According to the Transportation Department, the review found that Delta provided prompt refunds, baggage assistance and appropriate support for passengers with disabilities during the crisis.
In a statement, Delta welcomed the decision, saying regulators recognized the extraordinary circumstances surrounding the outage.
Delta and CrowdStrike did not immediately respond to Benzinga's request for comments.
Trump Administration Rolls Back Airline Enforcement Actions
The agency said it instructed Delta to continue providing timely notifications to passengers regarding their refund rights, but determined that no further action was warranted.
The decision was made in November but disclosed publicly on Monday.
The move comes as the Trump administration has scaled back several aviation consumer-protection actions initiated during Biden's tenure.
In December, the Transportation Department waived an $11 million penalty tied to a settlement with Southwest Airlines Co
The agency also waived $16.7 million in penalties imposed on American Airlines Group Inc.
Price Action: Delta Air Lines shares closed Monday at $84.07, up 1.22% and edged down 0.24% to $83.87 in after-hours trading, according to Benzinga Pro.
Per Benzinga Edge Stock Rankings, Delta's growth score sits in the 99th percentile, underpinned by strong short, medium and long-term stock performance.
