Delta’s earnings reveal the true cost of CrowdStrike’s collapse

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Remy Blaire: I’m Remy Blaire, reporting from the New York Stock Exchange. Here’s what we’re watching today on TheStreet.

Stocks are looking to pick up where they left off on Wednesday after the Dow and S&P 500 closed at record highs.

Wall Street is digesting the latest consumer price index report, which saw inflation cool once again in September, hitting a three-year low. Inflation now stands at 2.4% – slightly higher than economists’ forecast of 2.3%. The Federal Reserve’s inflation target is 2%. The report paves the way for the Fed to cut interest rates again in November.

Related: Delta customers detail CrowdStrike’s ‘disastrous’ chaos in lawsuit

In other news – now we finally know the real cost of Delta (DAL) July service collapse. The good news is that the airline beat Wall Street’s revenue estimates and reported a profitable quarter. However, Delta’s adjusted revenue of $971 million was down 26% from the same period a year ago. The company also missed its earnings per share target.

In July, a worldwide software breach from cyber security firm CrowdStrike forced all major carriers to cancel flights. Delta canceled more than 7,000 flights in a one-week period — and claims the disruption left a half-billion-dollar hole in its budget.

While most airlines were operating after a few days, Delta struggled to get back on track after the outage. CrowdStrike says the airline’s outdated systems were to blame, while Delta blames the cybersecurity company.

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Delta continues to seek compensation from CrowdStrike, with CEO Ed Bastian telling CNBC “The havoc that has been created deserves, in my opinion, to be fully compensated. This matter is now in the hands of our lawyers. Hopefully we will see a resolution, but we are keeping all our options open.”

That will do for your daily briefing. From the New York Stock Exchange, I’m Remy Blaire with TheStreet.

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