British Airways Lost Everything in 2017

Imagine being stranded at one of the world’s busiest airports with no information, no flights, and no idea when you will get home 😳 or attend that important meeting.

That was the reality for thousands of passengers when a sudden IT failure brought a major airline to a standstill. What followed was a crisis that disturbed global travel and threatened the reputation of one of the most well-known names in aviation 🤔

Any guess? They had to spend hundreds of millions of Euros to get to where they once were. In fact, much better.

What issues did this well-known airline get into? and
How did they recover from that?

Let’s see!

Crisis Context

British Airways faced a global IT failure in 2017 that severely affected its operations and reputation. The airline’s computer systems completely shut down, affecting operations worldwide.

This outage grounded over 75,000 passengers and caused delays and cancellations across its network, especially at British Airways key hubs, London Heathrow and Gatwick.

Gosh! Look at how massive the outage was:

The chaos lasted for two days and left passengers stranded with little communication from the airline. It happened when British Airways was already under study for cutting costs to improve profitability.

• They canceled 672 flights in just two days.

• Over 400,000 passengers were impacted globally by delays, cancellations, and lost luggage.

• The crisis cost the airline £58 million in compensations, rebooking, and operational losses.

It was the lack of information. British Airways' communication systems were also affected, meaning its website and app could not provide real-time updates.

Passengers were left confused at airports, with little to no guidance, and phone lines were overwhelmed by complaints. Social media became a hub for passenger frustration, and BA’s slow response to the mounting anger only worsened the situation.

Look at what passengers said in this video:

They later identified the root cause of the IT failure was a power supply issue in BA’s data center, but concerns arose about the airline’s lack of preparedness for such an event.

Despite being one of the world’s most prestigious airlines, people criticized British Airways for its underinvestment in technology. The failure showed the risks of neglecting critical infrastructure in favor of cost-cutting measures.

Competitors like Emirates and Lufthansa took the opportunity to offer disrupted passengers alternative travel options, further damaging BA’s customer loyalty.

This IT failure was not an operational disaster. It turned into a public relations nightmare. Headlines worldwide covered the chaos.

Crisis Management

People criticized how British Airways addressed the issue. Once the crisis hit, the airline was scrambling to restore operations while facing the anger of stranded travelers.

The initial response from British Airways was slow, causing even more frustration among passengers. With no immediate contingency plan in place, it took over 48 hours for the airline to restore its IT systems fully and resume normal operations.

• Public apology

British Airways CEO, Alex Cruz, issued a public apology within the first 24 hours of the crisis. However, all that went into criticism for being too generic and not empathetic enough to passengers' anger.

The public apology video received over 500,000 views within 48 hours but had over 30,000 negative comments. Here’s the apology clip you may want to see:

• Compensation

The airline compensated passengers whose flights were delayed or canceled. This included covering hotel stays, meal vouchers, and rebooking costs. The airline set aside an estimated £58 million to cover compensations, including refunds and rebookings.

• Customer service overload

One of the biggest issues during the crisis was the overwhelmed customer service lines. Passengers reported being unable to contact customer support via phone and social media channels like Twitter.

Social media complaints reached over 100,000 mentions in the first two days, but the brand was slow to respond. BA had not equipped its teams to handle such a massive surge in customer issues.

Communication breakdown

A major issue in BA's crisis was the communication breakdown. The airline’s website and app, which passengers rely on for real-time updates were also a part of affected systems.

This left passengers without clear guidance on rebooking options or alternative flights. It took hours for British Airways to issue proper updates across its communication channels.

With passengers stranded in airports and receiving little to no information, many felt abandoned by the airline.

Unlike some competitors, British Airways did not send notifications to affected passengers through SMS or email. Instead, passengers had to search for information.

Shifts post-crisis

Once British Airways managed to restore its IT systems, the team quickly shifted focus to preventing such failures and rebuilding its stained fame.

They immediately planned to invest over £600 million in upgrading its IT systems. This included moving to advanced cloud infrastructure, building backup systems, and cybersecurity measures to control future troubles.

The airline also introduced new training protocols for customer service teams, ensuring they would handle crises with a focus on reducing wait times and responding faster.

By 2019, BA had reduced customer service response times by 35% and launched several campaigns to counteract the negative press.

Financial damage control

British Airways took a financial hit from the crisis despite the operational recovery. Aside from compensation costs, the brand faced penalties under EU regulations.

Passengers whose flights were canceled or delayed for more than three hours were eligible for payouts under EU 261 regulation. The airline paid over £30 million in EU 261 claims, adding to the total financial damage.

While British Airways managed to stabilize its operations, the crisis management efforts were a lesson in what not to do when a brand faces a large-scale emergency.

Slow communication, underprepared customer service, and the lack of a strong contingency plan made the situation far worse than needed.

Recovery Process

British Airways’ recovery process from the 2017 IT failure blended immediate damage control and long-term strategic initiatives.

While people criticized the initial response, the airline took several steps to rebuild customer trust over the following months and years. Some of them among those are:

Investment in Technology Infrastructure

The most critical component of British Airways' recovery was an overhaul of its IT infrastructure. The IT crisis showed the weaknesses in the airline’s technology systems, which remained the same over a decade.

British Airways committed to a multi-year investment of over £600 million in technology improvements to avoid future disruptions. It included:

• Cloud migration: BA moved its core systems to cloud-based platforms to improve flexibility, scalability, and reliability. And this ensured smoother operations and faster recovery.

• Data center modernization: British Airways upgraded its data centers with more reliable power supply systems, advanced redundancy features, and improved disaster recovery protocols.

• Cybersecurity improvements: Given the increasing cyber threats in the aviation industry, BA also invested in cybersecurity measures. It involved advanced threat detection systems.

BA’s move towards modern cloud infrastructure was one of the largest technology investments in its history. Before the crisis, over 60% of its systems relied on outdated servers and in-house databases.

Customer-Centric Improvements

One of the biggest lessons British Airways learned from the crisis was the importance of communication during disruptions.

The airline introduced several customer-centric improvements to improve the passenger experience, even during operational hiccups.

• Real-time communication tools: BA implemented real-time communication tools such as SMS updates and app notifications to inform passengers about flight statuses, delays, and rebookings.

• Self-service options: The airline introduced more kiosks and mobile app features for passengers to check in, rebook flights, and handle other common requests without relying on customer service.

• Easy compensation: BA simplified its compensation process to help customer service teams claim compensation or rebook flights directly through the mobile app during a crisis.

After implementing real-time updates, customer complaints regarding communication delays dropped by 35% in 2018, and according to Skytrax, in 2019, BA saw a 25% improvement in customer satisfaction ratings.

Check out this clip where a passenger shows BA’s check-in kiosks:

BA rebuilt trust with its customers through faster and more transparent communication. These improvements helped the airline handle future disruptions with greater agility.

Oh! Let me not forget this. This may have been filmed years ago but It touched Indian hearts:

Revamped Marketing and PR Efforts

With technology improvements, British Airways also needed to regain its positive brand image. The crisis damaged the airline’s reputation, and passengers needed proof to see if BA was doing things right.

The brand launched several marketing and PR campaigns focused on its heritage, innovation, and commitment to customer service.

• Made by Britain Campaign: One of BA’s most notable post-crisis campaigns was the "Made by Britain" initiative in 2019, which celebrated British innovation and craftsmanship.

Check out the campaign here:

This campaign connected the airline’s commitment to British heritage with its efforts to modernize and innovate. The campaign also featured BA’s upgraded fleet and new services, signaling a fresh start for the brand.

• PR efforts: British Airways used public relations to repair its image through partnerships with travel influencers and publications.

The airline sponsored events and press trips, inviting key media figures to experience its improved service firsthand. Doing so helped BA change the public record and maintain brand sentiment.

Results

• In 2019, BA reported a 7.7% increase in annual revenue, reaching £13.3 billion, up from £12.4 billion in 2018.

• The airline’s parent company, International Airlines Group (IAG), also posted financial results, with operating profit rising to €3.3 billion in 2019.

• BA’s passenger numbers grew by 3.6% in 2019, reaching over 46 million passengers, while the airline reported a 2.5% increase in load factor (the percentage of seats filled).

• By 2019, BA saw a 25% improvement in customer satisfaction ratings on platforms like Skytrax, and its Executive Club loyalty program saw a 15% increase in membership in 2019.

• In 2019, BA reported that 90% of its flights departed within 15 minutes of the scheduled time, a marked improvement from the post-crisis period when delays were more frequent.

Conclusion

British Airways’ recovery from the 2017 IT crisis was lengthy and expensive, but the airline became stronger and more resilient. Through strategic investments, BA restored its financial health, regained customer trust, and rebuilt its brand reputation.

The airline's experience is a lesson in crisis management, showing the importance of proactive communication, continuous infrastructure investment, and strategic marketing.