United Airlines CEO hospitalized
Oscar Munoz, the recently installed CEO of United Airlines, was hospitalized Thursday after an unspecified ailment, the airline said Friday.
United said in a statement that it was notified about the action by Munoz's family. "In the meantime, we are continuing to operate normally," the airline said. United's stock ended down 3.1%, closing at $55.97.
The Wall Street Journal reported that Munoz suffered a heart attack, but United didn't respond to questions about the nature of his illness.
United's unions representing pilots, flight attendants and maintenance workers issued a joint statement wishing Munoz "a quick and full recovery from the health setback he experienced on Thursday. Our thoughts are with Mr. Munoz and his family as they go through this difficult time."
Munoz, 56, the former president and chief operating officer of CSX railroad, was a board member at United when he took the airline’s helm in September after a scandal ousted his predecessor, Jeff Smisek.
Smisek and members of his leadership team were forced out abruptly after an internal company investigation that paralleled a criminal investigation of the Port Authority of New York and New Jersey, which operates Newark Liberty International Airport, a United hub.
A former Port Authority chairman, David Samson, asked Smisek to provide poorly traveled flights to South Carolina, according to a report by Bloomberg News. Bloomberg News recounted a dinner in September 2011, attended by Samson and Smisek, when Samson allegedly asked that United resume service between Newark and Columbia, S.C., which had an airport closer to Samson’s weekend home.
Twice-a-week flights between Newark and Columbia, S.C., were less than half full during 11 of the route’s 19-month run and less than one-third full during six months, according to a review of Transportation Department figures by Anna.aero.
No charges have been filed against Smisek.
Analysts had mixed reactions to how Munoz's illness would affect United. Jim Corridore, an equity analyst at S&P Capital IQ, said the company has a "deep enough bench" to continue merger integration and improvement plans.
Vicki Bryan, senior high yield analyst at Gimme Credit, a research service for corporate bonds, said United's improvements could be delayed.
“There's no doubt that Mr. Munoz's challenges have been extraordinary," Bryan said.
"He has taken on one of the largest airlines in the world in seemingly total disarray with critical failures to address in network operations, customer service and labor relations," among other issues, she said.
Munoz has traveled the country and met with thousands of workers, apologizing for a decline in the airline’s reputation as it struggled to meet expectations.
Munoz posted an open letter about his efforts in Paste BN and other national newspapers in September on the fifth anniversary of the merger of United and Continental airlines.
"The journey hasn't always been smooth," Munoz said in the letter. “We are committed to re-earning your trust.”