Alaska Airlines IT Failure Grounds Fleet, ALK Stock Drops Again

Alaska Airlines Grounds Entire Fleet After IT Hardware Outage, Cancelling Over 150 Flights

  • Alaska Airlines canceled flights across the U.S. due to a major IT hardware failure.
  • The outage grounded the airline’s entire fleet for three hours on Sunday night, with recovery efforts continuing into Monday.
  • More than 150 flights were canceled, affecting about 7% of operations on Monday alone.
  • The company confirmed the disruption was caused by a third-party hardware issue and not a Cybersecurity attack.
  • Alaska Airlines shares dropped further, deepening an 18% year-to-date stock decline ahead of the airline’s July 24 earnings report.

Alaska Airlines halted flights across the United States on Sunday night after a critical IT hardware problem caused a system-wide outage. The disruption forced the airline to ground all aircraft for three hours, impacting service and leaving passengers stranded in airports nationwide.

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The airline reported over 150 total cancellations as of Monday, according to official statements. About 7% of flights that day did not operate due to continued recovery efforts and the need to reposition planes and crews. This added further strain on company operations and passenger travel plans.

In a company statement, Alaska Airlines said, “At approximately 8 p.m. Pacific on Sunday, Alaska Airlines experienced an IT outage that’s impacting our operations. We requested a temporary, system-wide ground stop for Alaska and Horizon Air flights until the issue is resolved.” The airline confirmed the outage stemmed from a third-party hardware failure, emphasizing that no cybersecurity breach took place.

Though the airline restored primary operations by 11 p.m. Pacific Time on Sunday, lingering effects continued into Monday. Disruptions required further flight cancellations and rescheduling. Costs related to passenger compensation and repositioning staff are expected to affect the upcoming earnings.

Alaska Airlines cautioned travelers about ongoing disruptions, stating, “Additional flight disruptions are likely as we reposition aircraft and crews throughout our network.” The incident placed additional pressure on ALK stock, which has now seen an 18% year-to-date decline as tracked by Yahoo Finance.

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Industry observers note the event highlights vulnerabilities for airlines reliant on complex technology systems. The timing comes just before the company’s next earnings report, adding to investor concerns about reliability and operational risks. For updates and support, passengers can visit the official Alaska Airlines website.

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