Tech glitches trigger widespread disruption, small businesses hit hard

NEW YORK — Following a faulty software update in Vienna, widespread technology disruptions continued at several airports around the world, causing a significant spike in flight cancellations. According to FlightAware, the United States saw a significant increase in domestic and international flight cancellations, totaling 758, exceeding the numbers typically seen on peak holiday days, with Delta Air Lines the hardest hit.

Delta alone accounted for 626 of these cancellations, which represents about 83% of the total cancellations reported. Delta CEO Ed Bastian told passengers that the airline is moving forward to resume normal operations following this setback. He explained that the disruption has led to more than 3,500 cancellations across Delta and its affiliates, with the airline now offering penalty-free rebookings to affected passengers.

Bastian noted that the software issues coincided with one of the busiest travel periods, with flight occupancy rates exceeding 90%, severely limiting their flexibility to reroute aircraft. Additionally, the tool Delta relies on to manage its schedule was rendered incapable due to the volume of changes required after the system failure.

Further complicating matters, adverse weather conditions have caused additional delays and safety concerns, particularly in Atlanta, where Delta’s main hub is located.

Impact on small businesses

As airlines scramble to recover from this technological blackout, small businesses are facing significant challenges. The disruption has left many small business owners struggling to manage their finances and operations.

For example, the owner of a New York-based market research firm has had difficulty fulfilling contractual obligations, processing payroll, and conducting essential communications. Similarly, a Maryland psychiatrist who runs an online clinic has found it impossible to contact staff or initiate sessions with clients. In New York City, a restaurant manager has expressed concerns about fulfilling payroll obligations because of disrupted sales and transactions.

This episode highlights the vulnerability of our increasingly digital world, which relies on a handful of IT providers. While large companies like Microsoft and CrowdStrike quickly received technical assistance to mitigate the fallout, smaller companies with fewer resources continued to struggle.

Among those affected was Tsvetta Kaleynska, CEO of RILA Global Consulting. Despite her efforts to fix a critical client project, the inability to finalize a contract through Docusign, impacted by the faulty update, threatened to cut her annual revenue by nearly a quarter. Reflecting on the crisis, Kaleynska emphasized the precarious dependence on technology, highlighting the dire implications for small businesses.

CrowdStrike, a leading cybersecurity firm, has provided an initial patch via an update, but many systems may require hands-on repairs, which could take several days.

Technology analyst Dan Ives of Wedbush noted that while larger companies often have the resources to respond quickly to such disruptions, smaller companies face an uphill battle. Ives highlighted the broader implications for the industry, stressing the need to prevent such incidents from becoming a global crisis.