United Airlines stock has dropped $1.4 billion following the incident where they forcibly removed a man from the plane due to overbooking. The four percent drop was significant in comparison to the one percent of other airlines the same day.
CFRA’s analyst Jim Corridore explained:
“We think this situation was handled in a deplorable fashion, but note that United has the right to refuse boarding to any passenger for any reason… We hope United will respond with apologies and procedural changes. Overall, we think demand for United Airlines flights are unlikely to be affected by this poor customer service incident.”
The incident was seen around the world after someone shared a video of the man being removed from the plane. The man apparently refused to leave the overbooked plane and was then dragged off by his arms and legs. His face was bloodied in the process.