As you likely know, Jeff Smisek stepped down from his position as CEO of United Airlines on September 8, 2015. This was a shocking endgame for one of the most powerful men in the airline industry. Previously, Jeff Smisek had helped to turn Continental Airlines around, helping it rebound from a low share price of around $2 all the way up to $50.
Given his record of success, I was interested in seeing how the markets would respond to his departure.
UAL Share Prices Since Jeff Smisek’s Departure
As you can see, there was a drop in UAL’s share price (in blue) in the days following his departure, and despite making a recovery a week later, United has trended below both the Dow Jones Index (in red), as well as shares for American Airlines (in teal) and Delta Airlines (in pink).
I am interested in hearing your thoughts on what impact Jeff’s departure from United Airlines might have on the public’s perception of the company, and its long-term share performance. After all, we know how much of the markets are driven by our fears!