An Alaska Airlines plane at Seattle-Tacoma International Airport. (GeekWire File Photo / Kurt Schlosser)
Alaska Airlines said Friday it has hired global consulting firm Accenture to conduct a full audit of its technology systems, part of a broader push to improve reliability after two major IT outages in recent months. The review will include a top-to-bottom examination of the airline’s systems, standards, and processes.
The move follows a major outage last week that grounded flights for eight hours. The Seattle-based company said more than 49,000 passengers had their travel plans disrupted and more than 400 flights were canceled across Alaska Airlines and its subsidiary Horizon Air. The outage was severe enough to postpone the company’s scheduled quarterly earnings call.
Alaska said the outage was due to a failure at its primary data center and was not related to a cybersecurity incident.
In a new regulatory filing, the airline said it does not plan on rescheduling its third quarter call and will provide updated guidance for its fourth quarter in early December, “once the full financial impact of the recent IT disruptions is understood.”
A separate July outage, caused by a failure of a “critical piece of hardware” at Alaska’s data centers, was expected to reduce earnings by about $0.10 per share, or roughly $12 million.
Alaska said it has boosted IT infrastructure spending by nearly 80% since 2019, investing in redundant data centers and migrating more guest-facing systems to the cloud.
The airline operates a hybrid infrastructure, blending its own data centers with third-party cloud platforms, according to an interview last year with Vikram Baskaran, Alaska’s vice president of IT.
Alaska began migrating workloads to Microsoft Azure around 2015 and continues to maintain its own data centers for critical workloads, according to the interview.
Earlier this week, Alaska had another IT disruption, but this time blamed Microsoft Azure, which itself had an outage that temporarily disrupted operations for customers worldwide. The disruption impacted Alaska’s subsidiary Hawaiian Airlines.
Alaska Airlines already tried to shore up its IT infrastructure after an outage in July forced the Seattle-based company to ground flights across the country.
Apparently, it wasn’t enough.
Alaska was hit with another major outage on Thursday, leading to a ground stop that lasted eight hours and resulted in more than 400 flights canceled across Alaska Airlines and its subsidiary Horizon Air.
In a new update Friday afternoon, the company said more than 49,000 passengers had their travel plans disrupted.
The outage was severe enough to postpone the company’s scheduled quarterly earnings call Friday. Shares were down more than 6%.
Alaska said it was still working to normalize operations.
The company has blamed the outage on a failure at its primary data center. It was not due to a cybersecurity incident.
“Following a similar disruption earlier this year, we took action to harden our systems, but this failure underscores the work that remains to be done to ensure system stability,” the company said in its latest update. “We are immediately bringing in outside technical experts to diagnose our entire IT infrastructure to ensure we are as resilient as we need to be. ”
It added: “The reliability of our technology is fundamental to our ability to serve guests and get them to where they need to be.”
Alaska said its July outage was caused by a failure of a “critical piece of hardware” at its data centers.
The airline operates a hybrid infrastructure, blending its own data centers with third-party cloud platforms, according to an interview last year with Vikram Baskaran, Alaska’s vice president of IT.
Alaska began migrating workloads to Microsoft Azure around 2015 and continues to maintain its own data centers for critical workloads, according to the interview.
The company last year partnered with Google Cloud on a generative AI-powered search experience.
The impact of this week’s outage was evident at Sea-Tac Airport on Thursday evening, where long lines wrapped around the concourse and a maze of suitcases piled up in the baggage claim area.
Alaska said Friday it does not have an estimate of the financial impact of the outage. The company’s Hawaiian Airlines subsidiary was not affected.
Alaska said the July outage was expected to reduce earnings by about $0.10 per share, or roughly $12 million.
The company on Thursday reported third quarter revenue of $3.8 billion, up 1.4% year-over-year, while profit dropped 69% to $123 million.
Travelers at Sea-Tac Airport try to find their luggage following a major outage at Alaska Airlines that began Thursday afternoon. (GeekWire Photo / Todd Bishop)
Alaska Airlines is still working to restore operations following a major outage that forced the Seattle-based company to cancel more than 360 flights on Alaska and its subsidiary Horizon Air.
The outage began Thursday around 3:30 p.m. PT. Alaska grounded planes across the U.S. as it addressed what it described as a “significant IT outage.”
In a statement, Alaska said a “failure occurred at our primary data center.” The outage was not a cybersecurity incident, according to the company.
“The IT outage has impacted several of our key systems that enable us to run various operations, necessitating the implementation of the ground stop to keep our aircraft in position,” Alaska said. “The safety of our flights was never compromised.”
The ground stop was lifted at 11:30 p.m. PT Thursday, but the company is still actively addressing operational impacts that resulted from the disruption.
The company canceled its planned third quarter earnings call on Friday. “We do not yet have an estimate of the financial impact of the operational disruption on our fourth quarter results,” Alaska said in a regulatory filing. The company reported revenue of $3.8 billion, up 1.4% year-over-year, while profit dropped 69% to $123 million.
The impact of the outage was evident at Sea-Tac Airport on Thursday evening, where long lines wrapped around the concourse and a maze of suitcases piled up in the baggage claim area.
The company’s Hawaiian Airlines subsidiary was not affected.
An Alaska Airlines plane at Seattle-Tacoma International Airport. (GeekWire File Photo / Kurt Schlosser)
Updated at 8:40 p.m. Pacific.
Alaska Airlines said it’s recovering from an IT outage and “actively restoring operations” as of 7 p.m. Thursday after grounding flights across the U.S. for about three hours.
In a statement sent to GeekWire, Alaska said the outage began around 3:30 p.m. PT with a failure at the company’s primary data center.
“The IT outage has impacted several of our key systems that enable us to run various operations, necessitating the implementation of the ground stop to keep our aircraft in position,” the company said. “The safety of our flights was never compromised.”
The outage was not a cybersecurity event or related to other events, according to Alaska.
Flights are resuming but passengers at some airports are facing long delays as they await inbound planes.
During the outage, passengers on Reddit reported that some planes were sitting on the tarmac or de-boarding. Customers also reported issues with the company’s app and website.
It was Alaska’s second outage in three months. The Seattle-based airline grounded flights after an outage in July that lasted about three hours.
Alaska Airlines is experiencing an IT outage affecting operations. A temporary ground stop is in place. We apologize for the inconvenience. If you're scheduled to fly tonight, please check your flight status before heading to the airport.
100 fewer Alaska Airlines aircraft in the air now compared to last week as the airline is experiencing an IT outage this evening. Some flights are now departing, but a delays will be felt for some time to come. pic.twitter.com/zIkJTTETiz
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