United Continental Holdings Inc (NYSE: UAL) had an overwhelmingly rough day in the market today and is continuing on the downward path today, and it’s all for good reason. It all has to do with how the company, and police for that matter, treated one of the company’s customers on Sunday. At the moment (10:19), UAL is trading at $68.76 per share after a loss of $2.76 per share (3.86%) thus far today.
UAL Continues Down On Viral Video
United Continental Holdings (United Airlines) is facing a bit of a rough patch, and for good reason. On Sunday, the company overbooked a flight, which happens quite often. However, when it was just about time for the flight to take off, the company decided that it was going to allow non-paying employees to fly. To do so, they had to kick paying customers off of the plane. While some customers made the decision to go without argument, one customer in particular was not up for giving his seat to a non-paying employee. This passenger happened to be a doctor that was eager to get back to his patients and didn’t have time to waste.
Instead of doing what most well-run businesses would do – put paying customers first and telling the employee that they will have to wait for an open seat – the airline decided to send the police in. So, in pulling the doctor out of his seat, the police pretty much beat the guy. Unfortunately, they ended up dragging him off of the airplane with blood streaming down his face.
This has led to a flurry of outrage among consumers and investors alike. Some investors have even posted puns like, “Delta should change its slogan to we beat our competition, not our customers!” As a result, UAL is definitely having a rough time as this issue continues to roll through the news feeds.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on UAL. In particular, we’re interested in the company’s response to the outrage as well as what they plan to do to improve conditions for passengers in the future. As always, we’ll continue to follow the story closely and bring the news to you as it breaks!
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[Image Courtesy of Wikimedia]