Ear Hustle

In Finance News: $1Billion Dollar Loss For United Airlines As Shares Were Down By 4% After Social Media Exploded With The Video Of A Man Being Dragged Off An Overbooked Flight

It’s going to take more than new lounges and better snacks for United Airlines to come back from the ugly debacle on Flight 3411.  Now if some people on the plane had not been recording the “incident” it is highly unlikely United would be trying to do damage control.  Well the people have spoken and they are not liking what occurred as they shouldn’t.  When is it fair that a paying customer has to give up their seat to a crew member who flies for free and could have easily waited until the next flight or possibly gotten a courtesy flight with another airline?  Welp, if United Airlines wants to get back in the good graces of the buying public, they had better start making some policy changes quickly or are they comfortable losing $1 billion dollars in one day?

Read more as reported by KCTV5:

Photo Credit: Mother Jones

Photo Credit: Mother Jones

Shares in United Airlines slipped by four percent Tuesday as the company scrambled to address a video showing a passenger being forcibly dragged off an overbooked flight.

United Continental Holdings (UAL) weathered the initial waves of anger caused by the video on Monday, with shares closing with a 0.9% gain. But momentum shifted by Tuesday morning.

The stock move on Tuesday knocked nearly $1 billion off the company’s market value.

The video, which surfaced Monday, showed a passenger removed on Sunday from United flight 3411 at Chicago O’Hare International Airport.

Several passengers recorded the incident on their phones and posted video on social media showing three Chicago Department of Aviation security officers dragging the man, who has not been identified, down the aisle by the arms and legs while other passengers shout in protest.

He continued to resist after he was removed and ran back onto the airplane, face bloodied from the encounter.

The incident sparked a massive reaction online.

Following the backlash, United CEO Oscar Munoz issued a statement calling the incident “upsetting” and apologized “for having to re-accommodate” customers.

But that failed to appease many customers. Public relations analysts have also panned the company’s public response to the incident.

Anger was not limited to the U.S. The incident was the number one trending topic Tuesday on Weibo, China’s answer to Twitter, attracting more than 100 million views.

China is one of United’s most important growth markets.

The Chicago-based carrier is the U.S.’s third-largest airline by passenger traffic, operating more than 4,500 flights a day to 339 airports across five continents.

United released its traffic figures for March on Monday afternoon, reporting 3% growth over the previous year.

The company has been trying to revamp its image after ranking near the bottom of airline customer satisfaction indexes for several years. It is updating its fleet and last year added free snacks, premium coffee, better Wi-Fi and upgraded airport lounges.

Source: KCTV5

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