United Airlines has one of the most elevated networks of domestic and international routes, especially in the Asia-Pacific region. However, the sudden changes in weather conditions over the last weeks put a lot of pressure on its business culture. As a consequence, the company was liable for a huge PR disaster just one week ago. United Airlines employees injured a doctor in their efforts to remove him from the airplane. Despite this controversial event, the company scored unexpected earnings.
United Airlines Scored 2.7% Better Results than Previous Year
The parent company of United Airlines, namely United Continental Holdings, has just reported unexpected earnings for the first quarter of the year. Thus, instead of 38 cents per share as Wall Street analysts expected, the company announced 41 cents per share. As a consequence, the revenue of the company stopped at a total amount of $8.42 billion. The figures are 2.7% better than the previous year. Moreover, the total revenue is higher than the expected total of $8.38 billion. Oscar Munoz, the Chief Executive of the organization, is content with the results.
“In the first quarter of 2017, our financial and operational performance gives us a lot of confidence about the foundation we are building.”
Oscar Munoz Took Full Responsability for the April 9 PR Disaster
The shares of the Unites Airlines performed poorly on April 9th. This was when new disastrous weather conditions affected the normal air traffic for both employees and passengers. As a consequence, United Airlines asked clients to give up their seat voluntarily. Even though there was a bounty involved, no one was willing to give up their ticket.
As a consequence, the crew resorted to a system of random selections of passengers that would be obliged to give up their seat for United employees. One of the random choices was Doctor David Dao. As the professional had a number of patients he had to attend to, he refused to comply with the request of the crew. As a consequence, employees resorted to force to remove the passenger from the airplane. The incident resulted in injuries for the United Airlines customer.
In light of social media uproar against such immoral PR disaster, shares dropped only to come back to the initial value of $71.55 during after-hours trading. Oscar Munoz commented the recent event as a humbling doing. He took full responsibility for the accident and promised to elevate customer service within his company in the nearest future.
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