Mr Munoz will remain the airline’s chief executive and a decision who will become company chairman will be made by the board as a whole.

There had been pressure on Mr Munoz to resign after the incident in which David Dao, a 69-year old Vietnamese-born doctor, was hauled off a flight from Chicago to Louisville, Kentucky by police to make room for United Airlines staff.

Dr Dao who, according to his lawyer lost two teeth and suffered concussion, is expected to sue the airline.

Mr Munoz faced heavy criticism for his initial response to the incident when he backed his staff.

But he recanted as the airline was engulfed in a public relations disaster, with passengers threatening a boycott and competitors revelling in United’s embarrassment.

Mr Munoz apologised profusely, promising that United would never use the authorities to remove a passenger from an overbooked flight again.