United Airlines has seen a fall in the value of its stock following an incident involving the forceful removal of a passenger on board.
United Airlines Shares Plunge Following Outrage Over Passenger Removal
United Continental Holding stock plummeted 4% before losses closed in to finish at a 1% low.
social media has erupted into an outrage following video footage of a passenger being dragged off an overbooked United Airlines flight in the US.
Chief executive of United, Oscar Munoz apologized and called the incident ‘truly horrific’.
At some point, United shares recovered after Mr. Munoz issued a subsequent apology for the incident.
Initially, Mr. Munoz apologized for “having to reaccommodate these customers.” It later emerged that in an email sent to staff, the United chief had said that the passenger was disruptive and belligerent.”
He later released a subsequent statement in which he said that the incident bothered him and that the company would do whatever it takes to mend the situation so it does not occur again.
At the start of trading on the S&P 500, United Continental Holdings was the biggest loser.
However, losses began to narrow down later in the afternoon following a second apology from Mr. Munoz.
The video, taken inside a United flight shows an elderly man being forcefully removed from his seat and dragged along the isle with a bloodied face.
According to communication experts, this latest incident could have a negative impact on the United Airlines brand.
This shocking incident comes only two weeks after the airline caused furor on social media for reusing two teenage to board a flight because they were dressed in leggings.
United shares saw a recovery in afternoon trading alongside most other stocks in the US.
Shares on Wall Street fell following panic among investors over the simmering tension between Russia and the US over the events in Syria.
The S&P 500 share index closed 3.38 percentage points lower at 2,353.78 while the Dow Jones came down 6.72 points to close at 20,651.30. The technology oriented NASDAQ index closed 4.15 points down at 5,866.77.
Investors paid more attention to safer assets including the Japanese yen, which rose 1% against the dollar and gold, which gained 1.6% to close at $1,274.26 an ounce.