Global IT failure causes major disruptions across multiple sectors

Businesses around the world were severely disrupted on Friday by a massive global IT failure that grounded planes, knocked out TV coverage, and affected hospitals and financial markets. The chaos, which unfolded from Australia to North America, has left many industries scrambling to cope with the fallout.

Flights were delayed across the globe, from the US to Hong Kong, while the London Stock Exchange paused news updates, and card machines failed to operate. Major broadcaster Sky News also went off the air.

Airports, including major hubs in Berlin, London, and Amsterdam, experienced long queues, with carriers such as Turkish Airlines, Air France, KLM, Delta, and Ryanair among those affected.

The exact cause of the widespread disruption remains unclear. However, several companies have linked the problems to issues with Microsoft and a cybersecurity company called Crowdstrike.

The UAE’s Telecommunications And Digital Government Regulatory Authority described the situation as a “technical defect” with Crowdstrike, advising users not to perform any updates or downloads of Crowdstrike software until the problem is resolved. Concurrently, the UAE Cyber Security Council recommended updating Google Chrome browsers to the latest version.

Toby Murray, a cybersecurity expert in Australia, suggested that a faulty update deployed to the CrowdStrike Falcon software, widely used in large cybersecurity-conscious organizations, could be responsible. Australian telecoms company Telstra attributed the issues to a “global issue” affecting both Microsoft and Crowdstrike.

Worldwide Impact

The IT failure affected a broad range of sectors, including banks, doctor’s surgeries, supermarkets, and railways, with users encountering a ‘blue screen of death’ worldwide.

Two hospitals in the northern German cities of Luebeck and Kiel canceled elective operations scheduled for Friday. Service problems were also reported on the website DownDetector for companies like Visa, Amazon, and ADT Security.

Microsoft confirmed it was investigating an “issue” with its 365 apps and operating systems. While some services were recovered, the company warned that users should expect ongoing “service degradation.”

In the UK, Sky News was temporarily off-air, and Britain’s biggest train company warned passengers to expect disruption due to “widespread IT issues.” The London Stock Exchange’s Regulatory News Service was also affected by the global technical issue.

Richard Hunter, head of markets at Interactive Investor, noted that while prices and indices on the London Stock Exchange were updating, news stories were not.

Air Travel Chaos

In the US, the Federal Aviation Administration reported that airlines United, American, Delta, and Allegiant had all been grounded.

European budget airline Ryanair and major airports in Berlin and Amsterdam were also impacted, with widespread problems reported at Australian airports where queues grew due to disabled online check-in services and self-service booths.

Five Indian airlines announced disruptions to their booking systems on Friday. National carrier Air India reported temporary impacts on its systems due to the Microsoft outage, causing delays. Budget operator SpiceJet reverted to manual check-ins and boarding due to “technical challenges.” Spain’s airport operator Aena reported disruptions at all airports, and Hong Kong’s airport linked its issues to a Microsoft outage.

Impact at Changi Airport

Check-in processes for some airlines at Changi Airport, including Singapore Airlines’ budget arm Scoot, Jetstar, AirAsia, and Cebu Pacific, were handled manually after the global technology outage hit on 19 July. Changi Airport Group (CAG) confirmed it was monitoring the situation closely, with ground staff assisting passengers, especially those with impending departures. Scoot experienced disruptions to its flight reservation system and check-in process, causing delays at various airports, including Changi, Taipei’s Taoyuan International Airport, and Kuala Lumpur International Airport.

Scoot is working with its vendor to restore services and has increased staffing at check-in counters to support customers. Customers are advised to arrive at least three hours before departure. Singapore Airlines (SIA) reported technical issues with its reservation hotlines and services at its Ion Orchard service center but confirmed no impact on flights.

The global IT outage is believed to be linked to a service disruption from CrowdStrike, following a software update that potentially affected any machine running on the Windows operating system with CrowdStrike’s security software.

The disruption also hit other airports worldwide, including several in Australia and the US.