Originally Posted by
encore
Whats even scarier is what is being done with these profits.
What Does American Airlines Group's $2 Billion Buyback Mean for Shareholders?
This can turn an amazingly successful airline into a bankrupt one overnight if the economy turns around or the market tanks.
The amount of debt airlines have, with all these orders, is astonishing. Too bad the bosses are not paying it down with these profits while time is good and instead thinking about their own stock options and the next quarterly results.
They're milking everything they can out of the good times but the majors are going to be in a world of hurt when things go south. And they always do.
The UCC put the AA merger together. They run the board, who runs Parker.
They want to pump the stock so they can sell.
It's incredibly stupid, yet AA took on $750 million in additional debt last year.
Hmm.
Personally, I'm passed as a long term employee. Pay off the notes for once! Own your planes outright. The concept is lost on the board, they want short term gains. Traditionally the vast majority of stock buy backs happen at stock peaks...
Of the three airlines, Delta was the only one to increase earnings over their fuel savings. Had fuel remained high, AA and UA would've both LOST money this quarter. That's huge.