Originally Posted by
Itsajob
3 months operating expenses is nothing when revenue is practically zero. A bunch of that cash is in the form of loans which have to be paid back with interest. You also don’t go into bankruptcy broke, it takes money to play that game. United is being criticized for making aggressive cuts in workers hours, downgrading positions, and preparing now for a smaller company this fall. As a result, our cash burn is about half of what AA and DAL.
Southwest, Spirit, and probably some of the other low cost carriers are licking their chops right now. While the legacies will shrink, these guys will grab market share that will be ceded when this is winding down.