United CEO likely to face investor questions about dragging

United Airlines CEO Oscar Munoz is likely to face questions from shareholders Wednesday about the rough removal of a passenger from a flight, an incident that sparked weeks of bad publicity.

Shareholders also will vote whether to re-elect Munoz and 14 other board members and whether to approve the company’s executive-compensation plan.

United Continental Holdings Inc. spokeswoman Megan McCarthy said the meeting is expected to last about an hour, with much of the time reserved for questions to the CEO.

Munoz has apologized repeatedly for the April 9 incident in which passenger David Dao was injured by Chicago airport security officers who were called to remove him from an overbooked United Express plane. The airline reached an undisclosed settlement with Dao.

Munoz has said he was wrong to initially blame Dao. The airline has since announced several policy changes, including a vow not to remove people from overbooked flights once they are on the plane.

The dragging incident came shortly after United was criticized for booting teens off a flight for wearing leggings. And animal lovers expressed outrage in April after a giant rabbit died in United’s care.

In the last year, United has reduced delays, canceled flights and lost bags. The company earned $2.3 billion last year.

On the stock market, United was the best performer among the biggest U.S. airlines in 2016. Despite the negative publicity, United’s shares have gained another 8 percent this year, second only to Southwest’s 18 percent increase and better than the 7 percent rise in the Standard & Poor’s 500 index.

Since video of the Dao incident surfaced, United stock has gained more in percentage terms than Delta and Southwest and nearly as much as American.

———

Koenig reported from Dallas.

Article Source…

Leave a Reply

Your email address will not be published. Required fields are marked *