He committed the third-largest US airline to "a thorough review" of its policies for handling oversold flights and vowed to report back to the public by April 30. "This will never happen again", Munoz told ABC News' "Good Morning America" in an exclusive interview.
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He added: "We are not going to put a law enforcement official onto a plane to take them off ... to remove a booked, paid, seated passenger; we can't do that". "We can't do that".
United Airlines' Chief Executive said he will not quit amid an explosive backlash to a video of a screaming passenger being dragged off a plane.
United spokeswoman Megan McCarthy said Wednesday that the passengers can take the compensation in cash, travel credits or miles.
The mother says she received an apology call from a United Airlines representative with an offer for a full refund of her ticket.
By Tuesday afternoon, nearly two days after the Sunday evening confrontation in Chicago, CEO Oscar Munoz issued his most contrite apology yet as details emerged about the man seen on cellphone videos recorded by other passengers at O'Hare Airport.
It wasn't until Tuesday that Munoz was more contrite. "Like you, I continue to be disturbed by what happened on this flight and I deeply apologize to the customer forcibly removed and to all the customers aboard".
"Probably the word is shame comes to mind", Munoz said after days of criticism and ridicule of the company on social media.
Dao is receiving treatment in a Chicago hospital for his injuries, according to a statement from lawyers who said they represent him.
Attorneys for Dao filed court papers Wednesday asking the airline and the city of Chicago to preserve evidence in the case.
At a City Council committee hearing Thursday, aldermen ripped officials from United and the department about the episode.
Chicago Aviation Commissioner Ginger Evans will also speak.
Explaining why the debacle happened in the first place, Munoz told GMA it was a "system failure", where the company didn't provide the right tools or resources to allow United's "front-line managers" to "use their common sense". United was trying to find seats for four employees, meaning four passengers had to deplane.
Dao was on a full jet at O'Hare Airport that was scheduled to fly to Louisville, Kentucky, on Sunday night when he and three other passengers were ordered off to make room for some employees of a partner airline.
Likewise, the Chicago Aviation Department has said only that one of its employees who removed Dao did not follow proper procedures and has been placed on leave.
Several videos of the indecent have resulted in a public outcry against United and Chicago airport security, who says they have placed the officer in question on leave pending an internal investigation.
Meanwhile, details emerged about the passenger, who was identified as 69-year-old Kentucky physician David Dao.
Oscar Munoz was lambasted for appearing to blame Dao, who was apparently knocked unconscious and then dragged down the aisle with his mouth bloodied, as other passengers pleaded for security staff to stop. Dao only started to get mildly upset when the second officer came on the plane after he continued to refuse to leave.
Three Aviation Department police officers got on the plane.
Dao can be seen in the video being dragged out of the plane with blood running down his face.
The backlash from the incident resonated around the world, with social media users in the United States, China and Vietnam calling for boycotts of the No. 3 USA carrier by passenger traffic and an end to the practice of overbooking flights.
United Airlines is now in the midst of a media storm after the video of Dao being violently dragged from the overbooked flight went viral.