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Old 04-25-2020 | 04:27 AM
  #9  
Al Czervik's Avatar
Al Czervik
You scratched my anchor
 
Joined: Feb 2011
Posts: 5,122
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Originally Posted by waterboy
I think AA is in the worst shape, and the only reason why anyone is buying AAL stock right now is because they believe "they are too big to fail"

Look at at their financials. Its a mess. Delta, widely regarded as having one of the best management teams in the industry, reported yesterday that it was burning $100mm/day! So I will assume, AA is burning at least that, if not more. I'm thinking more. They also have the least amount of cash going into this pandemic with $3.8B, vs DL with $6B and UA with $5B. American has the most Debt by far, with $33.4B. Not including the additional $6.5b loan it just took from the Treasury. AA also has negative stockholder equity, DL has $15B, and UA has $11.5b. And AA has the worst credit rating.

I hope AA makes it through, but they are definitely in the worst shape. So you can get off your high horse.
I like our chances compared to anyone else. We carry a lot of debt at AA. It’s been managements tactic for American to “get it while it’s cheap.” AA is done with fleet replacement (all 75/76/A330-300/190’s gone)/ building a new HQ and major infrastructure spending. Others will see these costs in the future.

Your numbers are a little off though:

From American’s 8K
(all coming into this)

debt:
34b total
23b net

assets:
8b cash
10b unencumbered assets
3b unsold miles