Alaska Airlines: Technology Outage Causes Mass Flight Cancellations
Alaska Airlines faced a significant technology outage, leading to more than 229 flight cancellations and a near 5% drop in shares. The disruption, which also affected Horizon Air, required a temporary ground stop and has prompted concerns over its financial impact on fourth-quarter results.
Alaska Airlines announced that it restored operations after a major technology outage that grounded flights across its network, leading to the cancellation of over 229 flights. The malfunction affected all airports and significantly impacted the carrier's performance, with shares declining by nearly 5% in early trading.
The airline is working diligently to resume normal operations but warned that further disruptions might occur. Alaska Air Group has yet to estimate the financial impact of the outage on fourth-quarter outcomes. A temporary ground stop was initiated on Thursday evening and lifted late Friday, also affecting Horizon Air, according to an FAA advisory.
Despite addressing customer grievances over social media, the airline did not disclose the outage's cause. Response efforts are underway from its IT team to address system errors. This follows previous IT challenges that affected the airline's profitability and postponed its October 24 earnings call.