What Does The Fox Say?
See Lea's contempt for the puppet-filled number (below)!
Things weren't great at United Airlines long before this viral video controversy.
As you surely know, the airline made headlines this month when footage of a male doctor being aggressively dragged off an overbooked flight hit the internet. After numerous celebs and internet users rallied around the victim, Dr. David Dao, United Airlines offered up several apologies to try and appease the situation.
And it seems as though the company isn't done apologizing as CEO Oscar Munoz has offered up ANOTHER "mea culpa." We have a feeling Munoz is scrambling to fix this situation as United's profit had already plunged 69% earlier this year. It's said the cost of fuel, labor, and maintenance all spiked during the first quarter, causing the company's profit to drop down to $96 million.
But United isn't in serious trouble — yet. In fact, this report from Monday beat Wall Street's expectations about the airline's financial standing. Apparently, the airline has done well by having more cancellation-free days and fewer lost bags. Not to mention, United was heading towards a direction where they'd finally be able to raise the prices of their flights after a two-year decline in average fares across the board.
Prior to the Dr. Dao scandal, the company expected their revenue-per-mile figure to rise by 1% to 3% in the second quarter. We have a feeling that stat is going to change now, especially since Mr. Munoz noted in a recent statement:
"It is obvious from recent experiences that we need to do a much better job serving our customers."
Well, duh. The businessman went on to add that the company is "dedicated to setting the standard for customer service among U.S. airlines."
Regardless, things shouldn't be too gloom and doom over at United. Seth Kaplan, a managing partner for Airline Weekly, told Time that one time scandals rarely have a lasting impact on an airline's revenue. In regards to loyal United passengers, Kaplan explained:
"They are more punctual, they're losing fewer bags. But it takes some time for the perception to catch up with the reality. This resets the clock. It was the last thing they needed."
What do YOU think? Will United survive this controversy??
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