United Airlines lost close to a billion dollars after their violent removal of a passenger made headlines this week.
According to the Gizmodo, United Airlines’ current stock value fell by almost $800 million. The American airline’s market cap was valued at $22.5 billion before the incident but quickly dropped to $21.7 billion after a passenger was forcefully removed from the plane on April 10.
— Anthony De Rosa ? (@Anthony) April 11, 2017
United Airlines’ stocks continued to slide by as much as 6% and experts estimated that the stock will continue to drop by a further 2.8% before the end of the week. Experts also foretold a significant loss of United Airlines’ market value by over $600 million since last week’s update.
The billion-dollar airline received backlash when the CEO, Oscar Munoz, who was recently named “communicator of the year” by PR Week, posted a tweet responding to the incident. The tweet seemed to justify the decision of the airline company rather than apologize to the passenger who was violently dragged off the plane after the airline overbooked his flight.
United CEO response to United Express Flight 3411. pic.twitter.com/rF5gNIvVd0
— United (@united) April 10, 2017
Since then, however, Oscar Munoz has made another statement, this time addressing the issue and taking responsibility for what happened.
— United (@united) April 11, 2017
This caused the stock to rally, recovering some of it’s lost value.