United Airlines Stock Takes Massive Hit After Dragging Man Off Flight
Shares of United Airlines are down markedly Tuesday, after a viral incident in which a passenger was forcibly removed from his seat on the plane because the flight was overbooked.
United Continental Holdings are down 3.99 percent as the airline deals with a significant backlash over the scene. If the stock remains that low at market close, it will wipe some $675 million off its market capitalization.
Videos surfaced Monday of airline officials dragging an alleged physician from a United Airlines aircraft, after the passenger reportedly refused to give up his seat at the bequest of flight attendants. The passenger was bloodied and noticeably shaken.
— Jayse D. Anspach (@JayseDavid) April 10, 2017
The company’s stock value dropped as much as 6 percent in pre-market trading Tuesday, a fall that would have eliminated $1.4 billion from the company’s $22.5 billion market capitalization.
Tuesday’s dip could signal to many investors that the incident could hurt the airline’s business more than just a temporary hit to its stock value. United’s stock value is down 4.7 percent on the year.
United CEO Oscar Munoz released a statement following the incident, apologizing for how the situation was handled. “This is an upsetting event to all of us here at United. I apologize for having to re-accommodate these customers. Our team is moving with a sense of urgency to work with the authorities and conduct our own detailed review of what happened,” Munoz wrote.
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