Originally Posted by
Firsttimeflyer
quick recap for those who didn’t want to watch it:
they still own all their United Shares
they shorted other airlines during the drop
never expected revenue to fall to essentially 0
they bought more United Shares at low/lower prices
$150 mil a day in payroll costs aren’t sustainable and need .gov intervention
the airline industry will look different coming out of this, there will be some winners and some losers but United will be around.
special project where big money investors want to buy into a couple of hard hit leisure based stocks and United is part of that
thinks stock will get back to where it was or higher but will be longer than a few months to get there
Just to nitpick but the highlighted above about our daily payroll costs is way inaccurate.
Based on the 2019 annual report:
Investor Relations - United Airlines Holdings, Inc.
2019 2018 Increase (Decrease) % Change
Salaries and related costs $ 12,071$ 11,458 $ 613 5.3
Aircraft fuel 8,953 9,307 (354) (3.8)
Regional capacity purchase 2,849 2,649 200 7.6
Landing fees and other rent 2,543 2,449 94 3.8
Depreciation and amortization 2,288 2,165 123 5.7
Aircraft maintenance materials and outside repairs 1,794 1,767 27 1.5
Distribution expenses 1,651 1,558 93 6.0
Aircraft rent 288 433 (145) (33.5)
Special charges 246 487 (241) NM
Other operating expenses 6,275 5,801 474 8.2
Total operating expenses $ 38,958 $ 38,074 $ 884 2.3
so that comes $33 million/ day ($12,071 billion/365 days) $150 million per day would be $54.75 billion per year!!! More then our entire operating revenue by $10+billion.