Originally Posted by
ninerdriver
Gonna do this again...
That 96% number is free cash flow, not profits. That number is also skewed by AA, which spent $12.9B on buybacks with almost $8B of negative free cash flow.
Remove AA, and the number is more like 60%, which is close to S&P averages.
I misspoke, free cash flow. In other words net income (profit) plus depreciation less capital expenditures. The crazy thing, in the end they may all just declare bankruptcy anyway, blame the coronavirus, gut the labor contracts and pay uncle sam back pennies on the dollar. The stock warrants the government receives as collateral will most likely be out of the money as the share price may very well be below the strike price. Let's hope not though. Hope for a speedy recovery for everyone's sake.