Delta Airlines Cautionary Tale: A Case Study in The Crucial Role of PR in Reputation Management  

Reputation management and business continuity planning has become a cornerstone of successful business strategy. Cybersecurity attacks and data breaches have long been at the forefront of crisis preparedness plans, but as companies become more dependent on technology, the scope of potential crises has expanded. IT outages, once a secondary concern, are now at the top of the list for scenario planning, particularly for companies that rely heavily on technology for scale, speed, and safety. 

The Delta Airlines Case: A Cautionary Tale 

The recent events surrounding Delta Airlines’ reaction to the CrowdStrike outages highlight the critical importance of effective reputation management and crisis preparedness. Despite assumptions that Delta would have a robust plan for IT outages, the airline faced a significant crisis that seemed to defy a tested playbook. With a projected $500 million loss in revenue and the emergence of class action lawsuits, Delta is grappling with reputational concerns that span multiple stakeholders, including customers, shareholders, and employees. 

While the incident was caused by a third-party vendor creating a global outage impacting multiple competitors, as well as spanning numerous industries including retailers and banks, any leniency customers may have felt toward Delta has been completely erased by the company’s crisis response. 

The company’s communication with customers regarding compensation for disrupted travel failed to consider the challenge of resolving such a high volume of issues in a timely manner, leading to a secondary wave of frustration directed specifically at Delta. A strong crisis preparedness plan would have dictated clear policies, timelines, and the best channels for disseminating information, which could have mitigated some of the damage 

Furthermore, Delta’s decision to cancel flights en masse, rather than delay them like some competitors, compounded the problem. This made it more difficult to rebook passengers, who were left scrambling to find seats on nearly full flights during the peak of summer travel. 

The Downside of Public Finger-Pointing 

Rather than adopting a ‘we’re all in this together’ approach, Delta has inexplicably come out attacking, in a head scratching move for reputational experts, CrowdStrike and Microsoft very publicly. They’ve even threatened to sue their partners, creating more negative news for themselves than the other airlines had to contend with. 

Public threats of lawsuits by corporations don’t achieve really any reputational benefits. In this case it added more problems and extended the life of a negative story. Cue the additional headlines about the losses Delta is facing.  The move also limited legal and comms teams as you start to show your hand externally. 

Then, CrowdStrike struck back publicly airing out some of Delta’s dirty IT laundry and reminding them of the limits of liability they contractually agreed to. None of it a good look for Delta. 

Microsoft took their turn too, with attorney Mark Cheffo saying, “Our preliminary review suggests that Delta, unlike its competitors, apparently has not modernized its IT infrastructure, either for the benefit of its customers or for its pilots and flight attendants.”  

This back-and-forth did little to help Delta’s standing with its customers, who didn’t care about the corporate blame game and simply wanted to be compensated and treated fairly. 

What Can We Learn from This? 

Scenario Planning is Critical: Companies must expand their crisis preparedness plans beyond traditional threats like data breaches to include IT outages, especially in tech-reliant industries. 

Clear Communication is Essential: In a crisis, clear, timely, and well-planned communication can make the difference between a managed situation and a full-blown reputational disaster. Make sure your plan covers all the ‘what-if’s’ that can arise and consider all external factors that might have an impact on your company and how you execute your crisis plan.  

Avoid Public Blame Games: While assigning blame might sometimes be necessary, publicly threatening lawsuits against vendors or partners during a crisis can further worsen your own situation. This approach can invite additional criticism from the public and prolong negative media coverage, further complicating crisis management efforts. 

Crisis Preparedness Must Be Comprehensive: An excellent crisis preparedness plan extends beyond technical solutions to include clear communication strategies, customer care plans, and active stakeholder engagement. Regular internal testing, along with continuous review and revision of your company’s messaging and crisis communication plan, is crucial for maintaining effectiveness. Revisiting the plan one to two times a year is recommended to consider new industry information or updates, the evolving news cycle, and any other factors that could impact your prepared plan. 

Why PR Firms Are Crucial in Reputation Management 

PR firms play an indispensable role in reputation management. They bring expertise in crisis communication, helping companies navigate the complexities of public perception during a crisis. PR professionals understand how to craft messages that resonate with different stakeholders, from customers to investors, and how to deploy these messages through the most effective channels. 

Moreover, PR firms offer an external perspective, allowing them to identify potential reputational risks that may not be apparent to those within the company. They can also help in developing comprehensive crisis preparedness plans that include scenario planning, communication strategies, and stakeholder engagement. 

By prioritizing reputation management and involving PR professionals in crisis planning, companies can better prepare for unforeseen events and protect their standing in the eyes of the public. 

Some of the most common scenarios we see companies want to prepare for: Cyber Security/Data breaches, IT/system outages, DE&I issues, Natural disasters, Active Shooters, and Corporate Malfeasance.