United Continental Holdings Inc UAL made headlines Sunday after having denied two teenage girls entry to a flight on principles of modesty. The gate agent allegedly requested that the passengers change out of spandex leggings or pull dresses over them before boarding their plane.
United stock opened down 1 percent Monday and continued to fall an additional 0.8 percent as the Twitter Inc TWTR world reacted in outrage at the airline’s regulations. But United defended its dress code enforcement.
@baddestmamajama United shall have the right to refuse passengers who are not properly clothed via our Contract of Carriage. ^FS
— United (@united) March 26, 2017
The company’s Twitter team added that the affected passengers were United pass travelers who serve as corporate ambassadors and are thus held to a stringent code of conduct.
@shannonrwatts (2/2) There is a dress code for pass travelers as they are representing UA when they fly. ^KP
— United (@united) March 26, 2017
Customers who are not pass travelers are exempt from particular dress requirements.
@dwaynebenji As you aren't a pass traveler, your attire doesn't need to meet the United pass travel clothing requirements. See you soon. ^AH
— United (@united) March 26, 2017
After continued public resistance, United assured prospective passengers that it approves of leggings and general casual attire, provided they are in “good taste.”
To our customers…your leggings are welcome! Learn more about our company’s pass travel privilege: https://t.co/5e3euG1H9G.
— United (@united) March 27, 2017
@PattyArquette Casual attire is allowed as long as it looks neat and is in good taste for the local environment. (1/2)
— United (@united) March 26, 2017
United shares rebounded Monday and rested down 0.22 percent at the time of publication.
Other PR Gaffes
Airlines recently boasted a publicity boost from Warren Buffett after the long-time critic of air stocks announced new stakes in three major companies. However, the public relations storms have since flared.
On Jan. 22, United grounded all domestic flights for two hours because of a computer outage, and, just weeks later, a glitch in Sabre Corp SABR’s global reservation system prompted hundreds more delays. United stock plunged 3.3 percent during the first occasion but remained relatively unaffected by the second.
Similar systems crashes canceled hundreds of Delta Air Lines, Inc. DAL’s late-January flights to heighten the chaos of concurrent travel bans. In July 2016, Southwest Airlines Co LUV grounded 2,300 flights due to downed systems. The respective outages prompted a 4-percent hit in Delta and an 11-percent drop in Southwest shares.
In 2009, a disgruntled musician sunk United shares 10 percent after the airline ignored his complaints of a damaged guitar and denied requests for restitution. The company soon battled a viral video of a song titled “United Breaks Guitars” and allegedly lost $180 million in value.
Recent flight-related terrorist activity and government-instituted travel bans have also disrupted airlines and their major hubs, but neither unavoidable PR hits significantly impacted stocks.
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