United Airlines Loses $1 Billion a Day After a Doctor Was Dragged Off the Plane
More than a backlash from social media users, United Airlines has suffered tremendous losses both in stocks and in daily flights. In a video that was posted in Facebook by a user named Aura D. Bridges, a man of Asian descent was forcefully dragged from his seat so that a company staff could seat in his place.
The man was seen nearly unconscious as an airport security was dragging him off the plane. In another video, the man is seen murmuring the words “Just kill me” and “I need to go home” over and over again. Clearly in shock of what has happened to him, the man who was later known to be Dr. David Dao was later brought to a hospital in Chicago where he is recovering from this ordeal.
Meanwhile as outrage grows even worse on the internet, more and more investors are withdrawing their support for the company. One of the company’s investor even posted a tweet stating “@united I will be re-accommodating my business permanently from @united to your competitors.” In response to this tweet Southwest Airlines also tweeted “We can’t wait to welcome you on board! DM us your RR # for a little treat before takeoff”.
After the incident the company’s CEO, Oscar Munoz, released a statement in support of the crew and staff of the airlines. He even stated that “He (Dr. Dao) was approached a few more times after that in order to gain his compliance to come off the aircraft and each time he refused and became more and more disruptive and belligerent”. Munoz also added that the company staff did what they had to do and that they “followed established procedures for dealing with situations like this”.
These statements however proved to be a fatal mistake. At the end of the day, as the stock market comes to a close, United Airlines’ share drops by 1.15 per cent, making it one of the biggest loser on the S&P 500 index. In a single day, United has lost almost $1 billion because of this incident. 16 million shares from United Airlines also shifted to other companies making it one of the biggest shifts in a year.