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Traders aren't sure they can stomach airline stocks after United scandal

Christine Wang
Adam Jeffery | CNBC

The " Fast Money " traders weighed the airline stocks in the wake of a video in which a man was forcibly removed from his seat on a United (NYSE: UAL) Express flight operated by Republic Airways.

On Tuesday, United CEO Oscar Munoz apologized and called the incident a "truly horrific event."

"I want you to know that we take full responsibility and we will work to make it right," Munoz said in a statement, pledging to share the results of an internal review on April 30.

While the scandal has a "massive" impact from both a cultural and commercial perspective, trader Tim Seymour said this will eventually "bubble over."

"Sentiment in airlines right now is abysmal," Seymour said.

He explained he doesn't condone the behavior shown in the viral video, but as a trader he would buy the weakness in the industry.

Trader Guy Adami said he wouldn't buy the stock right now even if someone told him that the stock would go to $150. The stock ended Tuesday's session around $70.71 a share.

Trader Dan Nathan said he's not sure that airlines will get rid of their involuntary deboarding policies after the scandal. Despite the consumer outrage, Nathan explained that it's a policy that benefits the company and its shareholders.

Disclosures:

Tim Seymour is long ABX, AAPL, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD, MOS, MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, SQ,T, TWTR, VALE, VZ, XOM. short: EEM, SPY, XRT. His firm is long ABX, BABA, BIDU, CBD, CLF, EEM, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG, HYG, IWM.

Karen Finerman is long AAL, BAC, BAC short calls, C, DAL, EEM, EPI, EWW, DVYE, FB, FL, GLMP, GOGO, GOOG, GOOGL, JPM, LYV, KORS, KORS calls, KORS puts, MA, SEDG, SPY puts, TACO, WFM, WIFI long call spreads. Her firm is long ANTM, BAC, C, C calls, FB, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, PLCE, SPY puts, WIFI, XLF. Her firm is short IWM, MDY. Finerman is on the board of GrafTech International.

Dan Nathan is long SPY May put spread, XLV APR-June put spread, XLI June put spread.

Guy Adami is long CELG, EXAS, GDX, INTC. Adami's wife, Linda Snow, works at Merck.



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