Originally Posted by
FourPutt
They've got to be losing more than just a bliion in revenue per month, probaby burning through a billion in cash per month with revenues down 50% or more.
44b rev and 42b expenses (pulling #'s out my butt), Loss of 30b in annual revenue (70% haircut...optimistic?)
5b in fuel savings from cheaper gas and not flying.
Leaves 13b revenue and 37b in expenses
Burn of 2b a month or time to expire...less than four months with no more borrowing.
above is just shotgunned. Pay cuts and layoffs will probably give another month or so of burn. Eventually all the majors are going to go through restructuring and shed half or more of their aircraft, there is just no way to recover from this. I'd bet AA furloughs 6000-7000, maybe more. TWA guys will be on the street...again.
And no he demand won't just come right back, because there won't be anyone left that is employed.
I think the U.K. is doing it the right way. It's gonna happen...everyone is gonna get this...at least they will have an economy after it's all said and done.