I can’t believe United management hasn’t done anything to fill the empty terminals around the system, overrule international travel bans, and quell the fears of a global pandemic. How dare they take preemptive measures to stem the red ink, the nerve! Where’s MY entitlement!?

I think the phrase “We’re hemorrhaging cash” has been removed the the UAL PR playbook, but anyone remember what happened the last time it was used? There hasn’t been a sudden disruption in the business of this magnitude since Goodwin uttered that phrase to Wall Street. Whatever you believe about the corona virus, it has a marked and measurable impact on the operation. To see a management that can take quick decisive action is refreshing, even if inconvenient.

If this is your first downturn, you’re not gonna like it. Managment has no other choice as they’ve elected to bolster shares through stock buybacks at the expense of cash reserve. If you read the SEC filings you know that UAL doesn’t have the cash war chest to play this game for too long without drastic action.

If quarantines and empty airports last more than a few months, what you’ve seen over the last few weeks will be in hindsight the least drastic steps made by management.