United Airlines’ Gets Horrible News About Stock Price After Passenger’s Violent Eviction [VIDEO]
If you have seen the video of security dragging a man off a United Airlines flight this week, then you might be scratching your head like I am as to how the management could allow this to happen. The confusion from United customers across the world has meant bad business for United. United Airlines’ stock price closed 1.1% down, after plunging so much the company might have lost almost $1 BILLION days after a passenger’s violent eviction.
Even the CEO of United Airlines apologized again Tuesday amid a global uproar, especially when it turned out the flight wasn’t even overbooked. Instead, United and regional affiliate Republic Airlines, which operated the flight, had randomly selected four passengers to be removed to accommodate crew members needed in Louisville the next day. YIKES!
“I continue to be disturbed by what happened on this flight, and I deeply apologize to the customer forcibly removed and to all the customers aboard,” CEO Oscar Munoz said in a statement. “No one should ever be mistreated this way.”
Those words were way too little, way too late as the United Airlines stock dropped dramatically and surprisingly:
United Airlines saw its stock price dip by as much as 4.4 per cent before it recovered most of its losses and ended the day with a more modest drop.
Shares of United Continental Holdings Inc. fell by as much as 4.4 per cent in early trading on Wall Street, wiping nearly $1billion off the company’s value.
But by the closing bell, the stock recovered somewhat and ended the day at $70.71 a share – which is a loss of 1.13 per cent.
The airline ended the day having lost $255million.
In premarket trading on Tuesday, the share price dropped by 2.4 per cent, according to MarketWatch.
Investors currently peg United’s market capitalization at $22.5billion.
The 2.4 per cent drop is an improvement over the 6 per cent drop in share price that had been reported in premarket trading hours earlier.
A drop in share price of 6 per cent would translate into a $1.4billion depreciation in value.
Outraged, United customers took to social media to lash out and announce how they will boycott the firm. Alongside a picture [pictured below] of a destroyed frequent-flyer card, Steven Reichert wrote: ‘Cutting up my United frequent flyer card, and will NEVER EVER fly them again. #boycottunited #united.’ And then the tweets went from #boycott to humor as they roasted United Airlines. Even my business partner tweeted a picture I sent to him in text on his twitter account that mixed pop culture, showing Walking Dead’s ‘Lucille.
— Ryan Ruggiero (@RyanRuggiero) April 10, 2017
— Henners (@henry_shaw) April 11, 2017
— kris peck (@krispeck) April 11, 2017
Board as a doctor,
Leave as a patient. #NewUnitedAirlinesMottos
— Jenn (@fanqin0619) April 11, 2017
— John Hawkins (@johnhawkinsrwn) April 11, 2017
— SFC_Airborne51 (@SFC_Airborne51) April 11, 2017
— #MAGA in the 316 (@mikeo159) April 11, 2017