Originally Posted by
alfaromeo
Carl claims that AMR's lack of profitability is debt related. Carl said AMR's debt was double Delta's.
In the 3Q, AMR spent $171 million in interest expense on about $8.2 billion in debt. Delta spent $229 million in interest on about $12.5 billion in debt. American reported a net LOSS of $153 million and Delta reported a net PROFIT of $547 million, after all special items. Do the math, if a magic fairy comes along and wipes out all of American's debt and let's them keep all their airplanes, American still has a third quarter where their profit is $18 million. $18 million profit in the third quarter, you know the money quarter, summer travel, the one that is supposed to support you the whole year. $18 million if they eliminate ALL THEIR DEBT. Sure they don't have a revenue problem, it's all about debt.
Their debt obligations are $29.6 billion. Now go re-do your math.
Originally Posted by
alfaromeo
With ZERO DEBT American would still lose money for the entire year, they would still lose money for next year, and the one after that. Is this really all about debt?
Incorrect. Go re-do your math.
Originally Posted by
alfaromeo
If debt is the problem, how come Delta spent more on interest and still reported a healthy 3Q while American sucked it once again?
If debt ISN'T the problem, why are they in bankruptcy court? What kind of protection are they seeking there?
Originally Posted by
alfaromeo
In the third quarter Delta increased PRASM by 11% while American increased PRASM by 5.8%, but you know that has nothing to do with profitability, it's all about debt. It is completely unrelated to profit that Delta was able to raise fares to cover the run up in fuel prices while American lagged behind once again, revenue doesn't matter, it's all about debt.
So Delta has more debt, Delta pays more in interest every quarter than American. Delta also has been leading the industry in PRASM growth while American is the laggard. Delta makes a PROFIT in the third quarter while American has another LOSS. Delta will be solidly profitable this year and next while American is in bankruptcy.
Yes, Carl, proved it, it's all about debt. Revenue doesn't matter, it's all about debt. Hey, if some guy sitting on the desk at AP says it's so, it must be true.
Since we all know your true identity too, you are not an unbiased observer. But hey, let's not look at real numbers, they are just a deflection of the truth.
Look alfaromeo, flailing around and insulting people won't prove your point. AMR has $29.6 billion in debt obligations. Anyone can look it up. Nobody seeks bankruptcy protection due to revenue problems. And if you know my true identity, how does that make me an unbiased observer? Oh, I forgot. Just more flailing and mud slinging.
Still noting for the record that you've come up with NOTHING to back up your original claim that AMR is where they are because of a lack of JV's and code share.
Carl