United Airlines Has Already Lost $600 Million in Market Value Today

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United Airlines allowed heavy-handed bad cops to assault a man, but karma is coming their way.   Monday, United Airlines felt the backlash from the forcible removal of a bloodied passenger from a Chicago-to-Louisville flight in order to fly four employees for an assignment the following day, an incident that went viral around the world. 

Tuesday the major airline was hit big time where it hurts.  Wall Street.

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The stock of United’s parent company, United Continental Holdings, closed Monday at $71.52 a share, with a market capitalization of $22.5 billion — actually rising about 1 percent on the day despite the avalanche of bad publicity.

 

Was it possible that Wall Street was actually encouraged by United’s relentless pursuit of shareholder value in trying to maximize the load factor of its airplanes, draggings and all? (United also reported a 3 percent year-over-year increase in March traffic later on Monday, likely a bigger factor in the day’s performance.)

Written By: Tommy Lightfoot Garrett
Photographs are Courtesy:  United
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