Belfast Telegraph

BA IT failure will cost £80m: IAG

By Kalyeena Makortoff

British Airways owner IAG has said a major IT failure that caused travel chaos for tens of thousands of passengers last month will cost the company £80m, as it extended another apology to customers.

Chief executive Willie Walsh gave the estimate during the airline giant's annual general meeting, where the company also apologised to customers and praised its staff for the way they handled the incident.

"On May 27, British Airways suffered a power failure to its primary data centre, which led to severe disruption to its flights at the beginning of the UK half-term school holiday.

"Our initial assessment of the gross cost of the disruption is in the order of £80m. We will update the market at the appropriate time with more details."

Mr Walsh added that the work to restore operations was "an outstanding achievement by the teams involved" and stressed IAG was "working hard to ensure that affected passengers are compensated as soon as possible".

He said the company has also launched an independent investigation following the incident and would provide an update once the probe is completed.

"What we do know at this stage, however, is that this failure had absolutely nothing to do with changes to the way we resource our IT systems and services," Mr Walsh said.

The airline cancelled 726 flights due to a power failure at the end of May, sparking a raft of compensation claims for flight costs, train and hotel expenses, replacement clothes and toiletries. Under EU law, passengers can claim compensation from BA for cancelled or delayed flights, worth up to 600 euro (£528).

Belfast Telegraph