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American Airlines Hit by IT Failure

American Airlines had to ground all of its US flights yesterday afternoon because of a problem with its reservations system.  The IT problem was resolved within a few hours but disruption persisted throughout the rest of the day.  American Airlines were quick to offer refunds to affected passengers and, so far, there does not seem to have been any impact on the company’s share price.

The criticality of IT in the travel industry was highlighted as long ago as 1993 when persistent problems with their reservation system caused a fall of more than 50% in the share price of Greyhound Lines in the US but, 20 years on, these systems are still falling over.