Technical Issue Cost American Airlines $35 Million

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Just one month ago, one of American Airlines’ regional carriers experienced a technical issue that forced AA to ground all flights operated by PSA Airlines, cancelling nearly 3,000 flights — about 12% of AA’s flights — over the course of six days. The debacle was caused by latency issues with PSA’s computer systems that interfered with the airline’s scheduling and tracking tools for its crews.

Well, the glitch is going to cost American. The airline just shared its second quarter financial results and said that the outage likely negatively impacted pre-tax income by about $35 million. While American rebooked and refunded passengers and also booked hotel rooms for the thousands stranded in Charlotte, it didn’t offer a travel waiver.

This comes at a time as American and other airlines are also grappling with increasing fuel costs, a pilot shortage and insufficient airport infrastructure.

Featured photo by Daniel Slim / Getty Images.

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