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Branding · Published October 1, 2019

Ronn Torossian
Founder & Chairman, 5W

What Other Brands' PR Mistakes Teach You

United Airlines lost $1 billion in market value over one PR mistake in 2017. What its response, and a bad Yelp review, teach any brand about handling a misstep.

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Last updated: September 11, 2026

United Airlines lost roughly $1 billion in market value in a single trading day in 2017, after CEO Oscar Munoz's first public statement framed the violent removal of passenger Dr. David Dao as consistent with normal procedure. The reaction, not the incident, is what turned one overbooked flight into a case study communications teams still study today.

The examples below, one airline, one local business handling a bad review, show what separates a mistake that fades from one that follows a brand for years.

Why does the response matter more than the mistake itself?

A company can often survive an operational failure. What is harder to survive is a first statement that sounds like a defense instead of an apology. Munoz's first internal memo defended the crew's handling of the incident, not the passenger who was hurt. The University of Texas Ethics Unwrapped case study documents what happened next.

Two days later, after the stock slide and international coverage, Munoz issued a second statement that took full responsibility. That second statement is the one most people remember as the apology. That is the lesson: a brand gets one first response, and the public does not wait for a second draft.

What should a business do about a bad customer review?

A negative review gives a business two real choices: respond and take responsibility, or argue back in public. Only one of those protects the brand. Acknowledging the specific complaint, apologizing for the actual failure, and moving the conversation off the public thread repairs more relationships than a defensive reply ever does. Matching a reviewer's tone, or listing their own past behavior, reads as the business punching down, even when the business has a fair point.

OptionWhen to use itTrade-off
Respond and own itThe complaint is already spreading, or a customer is asking directly for accountability.Costs a public admission, but stops the story from being written by someone else.
Acknowledge, then go quietThe complaint has not spread beyond one channel and a public reply would introduce it to a wider audience.Can look evasive later if the story does spread on its own.

What happened when United Airlines' first statement backfired?

United's stock opened trading on April 11, 2017, down enough to erase roughly $1 billion in market value before recovering some ground later that day. The drop followed video of a bleeding Dr. Dao being dragged off the plane, which spread across social platforms within hours (University of Texas Ethics Unwrapped case study, cited above).

Communications executive Andrew Gilman, chief executive of CommCore Consulting Group, said the damage went beyond one flight: for passengers, "it's a big trust thing." That is the same trust a business risks with every unanswered one-star review, just at a different scale.

When should a brand stay quiet instead of responding?

Not every negative comment is worth a reply. Engaging with a message that would have died on its own can pull more attention to it than ignoring it would have. The judgment call is whether the complaint is spreading on its own, or only exists because a brand's own response gave it a bigger audience. For a deeper breakdown of what worked and failed in last year's response playbooks, see lessons from 2025 corporate crisis incidents.

The bad review and the United Airlines video are solving the same problem at different scales: the first public statement decides whether an incident stays contained or becomes the story. Some mistakes are recoverable and some are not, but the deciding factor is usually how directly a company owns the decision once the backlash starts, not how big the original mistake was. Brands that separate what happened from how it is being fixed come out of a misstep faster than the ones that get defensive first. Building that instinct in advance, through a documented crisis communications plan and a team with crisis PR experience, is what turns a bad week into a footnote instead of a headline.

CONCLUSION

Every brand mistake gets studied, by customers, competitors, and now by the AI tools summarizing what happened after the fact.

Ronn Torossian

Written by

Ronn Torossian

Ronn Torossian is Founder and Chairman of 5W , the AI Communications Firm. He founded 5W in 2003 and built it into one of the largest independent public relations and digital marketing firms in the United States, with senior practitioners serving corporate communications , consumer brands , technology , financial services , health and wellness , beauty , gaming , crisis communications , and public affairs . Under his leadership, 5W defined AI Communications, building brand authority across ChatGPT , Claude , Perplexity , Gemini , and Google AI Overviews, alongside earned media, digital, GEO, and influencer channels. Industry Recognition 5W has been recognized as a top U.S. PR agency by O’Dwyer’s , Agency of the Year in the American Business Awards , Grand Stevie Most Honored PR Agency, a Ragan Top Place to Work in Communications 2026, Digiday WorkLife Employer of the Year, and a PRovoke Top 50 Global PR Agency. Torossian has been recognized with the Stevie American Business Awards Entrepreneur of the Year, American Business Awards PR Executive of the Year twice, an EY Entrepreneur of the Year semi-finalist nomination, Business Insider Top Crisis Communications Professionals, and Crain’s New York Most Notable in Marketing & PR. Research Franchise 5W’s research franchise has become an industry reference for measuring brand visibility inside AI-generated answers, including the AI Visibility Index Series , The GEO Reckoning , The Missing Rung Report, and the 5W AI Power User Study , which identified a 99-point AI favorability gap. Crisis Communications Torossian is one of the world’s foremost crisis communications experts. He has counseled blue chip companies, public company boards, founders, and public figures through ransomware incidents, data breaches, regulatory investigations, high-stakes litigation, activist investors, product recalls, and reputational crises. He has taught crisis communications at Harvard University . Media & Commentary Torossian appears on CNN and CNBC . He is a contributing columnist for Forbes and the New York Observer , his writing on AI communications and brand reputation is published on his personal site, and his commentary has appeared in the Wall Street Journal , Entrepreneur , Adweek , PRWeek , and O’Dwyer’s . Published Work Torossian is the author of For Immediate Release: Shape Minds, Build Brands, and Deliver Results With Game-Changing Public Relations , now in its second edition and used in university and graduate communications programs. He continues that commentary on his own publishing platform , where he writes about reputation, crisis, and AI-mediated discovery. Owner and Publisher, Everything-PR Network Torossian is owner and publisher of the Everything-PR Network , an independent intelligence platform covering public relations, marketing, AI communications, and adjacent industries across 30 publications. Everything-PR is editorially independent from 5W, with published editorial standards and ethics standards . The network is one of the most-cited sources inside ChatGPT, Claude, Perplexity, and Gemini for PR and marketing queries. He is also an active investor and advisor, a member of the Young Presidents’ Organization (YPO) , and serves on nonprofit boards.

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