An outage at Amazon Web Services (AMZN) is disrupting the websites and apps of major U.S. carriers such as Delta Air Lines (DAL) and United Airlines (UAL), making it difficult for passengers to check in online.
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The leading cloud computing provider said that it is “seeing significant signs of recovery” following a massive outage that impacted websites around the world, including Robinhood Markets (HOOD), The New York Times (NYT), and the Walt Disney Co. (DIS).
What caused the outage is not clear. However, the disruption at Amazon Web Services appears to be causing particular havoc for some leading airlines, with passengers of Delta and United complaining on social media that they can’t check in or drop off bags as planned. United responded to a customer on social media, writing that it is “experiencing a system glitch affecting our online tools.”
Chaotic Airports
There are also reports of chaos and significant delays at major U.S. airports due to the AWS outage, including in Dallas, Texas; Chicago, Illinois; and Newark, New Jersey. Both United and Delta issued statements saying that they are working to get customers on their way as quickly as possible.
It is not clear if other major U.S. carriers such as American Airlines (AAL) and Southwest (LUV) are also experiencing problems because of the AWS glitch. However, this is not the first technical outage that has caused chaos at U.S. airlines. A massive CrowdStrike (CRWD) outage in July 2024 disrupted air travel worldwide, forcing Delta Air Lines to cancel more than 5,000 flights at an estimated cost of $500 million.
Is AMZN Stock a Buy?
AMZN stock has a consensus Strong Buy rating among 43 Wall Street analysts. That rating is based on 43 Buy recommendations assigned in the last three months. The average AMZN price target of $267.82 implies 24.61% upside from current levels.
