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Wall Street jitters: United shares plummet as airline tackles PR crisis

by LLB Reporter
11th Apr 17 7:17 pm

Is United heading for a crash?

A day after the shocking video emerged of a United passenger aged 69 being dragged from his seat, shares in United Airlines have dropped by as much as 4 per cent wiping off more than $700m from its market value.

The chief executive of pollsters, Ben Page of Ipsos Mori tweeted: “Reputation and value can be destroyed in an instant.”

Richard Young replied in a tweet to Young saying: “”Millions wiped off United’s value” is a normal day on the market. Fact it’s not MUCH lower is an indictment of the whole air travel sector.”

Despite United Airlines chief executive Oscar Munoz defiant letter to his employees claiming that the passenger had “defied” security officer’s investors have become nervous.

The video showing the passenger being dragged down the aisle of the plane with a bloodied face reached over 130m views on China’s social media platform Weibo by Tuesday.

United Airlines earned roughly 14 per cent of their annual revenue in 2016 just by doing Pacific routes.

Sean Spicer the White House press secretary has said the videos showing the United passenger dragged from his seat: “It was an unfortunate incident, clearly when you watch the video it is troubling to see how that was handled.”

“I don’t think anyone looks at that video and isn’t a little disturbed that another human being is treated that way.”

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