Originally Posted by Varsity

They are buying stock net, if you take that into account they basically didn't make any money at all Q1.

Impending 1bn pension payment in 2020? Most of their aircraft financing is syndicated in Libor+spread pools. As interest rates go up the liabilities will increase while the face value of the note drops, driving it insolvent. If AA takes a hit to their credit rating (likely) the banks will drop out of the pool, skyrocketing financing costs overnight (death spiral).

I used to be an analyst in institutional finance, but I'm sure the lifelong pilots on APC know more.