Originally Posted by
SilentLurker
Let’s say oil went $90-$100/barrel, AAG can still maintain a positive balance sheet for over 4-5 years, not to mention reorganization, fleet changes, route changes, layoffs (not including flight crew), further delays of aircraft into 2024. Come 2020 /2021 more cash will be free after large pension fund payoffs.
Many negative factors would need to occurs for AAG to risk a chapter 11 or 7 bankruptcy. It’s nowhere close.
I love how people predict bankruptcies because of stock price, when the company is financially doing better than ever.
They forget the important bit about AA's debt. The fleet renewal is fully funded, so that money has paid for a lot of airplanes at very attractive rates. And those planes, when they enter the fleet, will give a nice cost advantage even if the oil goes up again.