Thread: Airline Balance Sheet Comparison
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Old 05-07-2020 | 05:05 AM
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Privateer89
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Default Airline Balance Sheet Comparison

Airline Balance Sheet Comparison



After Q1 earnings these are rough estimates for positions at the end of Q2 2020 after raising cash and debt. Assumption is that all airlines take the secured loans in the second part of the CARES Act. AA has committed and others are analyzing. Numbers may be slightly inaccurate due to the constant shuffling to liquidity for debt and assets. as well as varying cash burn rates. The cash to zero estimate is also based off of the current burn which is worst case scenario with no recovery in revenue and no cost cutting measures taken on 10/1/2020. Airlines will have unencumbered assets remaining that could potentially be used to leverage for more cash if they have a low debt to asset ratio. The higher the debt to asset ratio, the more at risk and leveraged the company is. Boeing and airline CEOs seem to be in agreement that international flying will lag domestic recovery by a year. This will obviously further complicate a recovery for AAL, UAL, and DAL as they deal with inefficient long haul fleets.


Southwest Airlines
  • Total Cash-15.5B
  • Total Debt-13B
  • Total Unencumbered Assets-5B
  • Debt to Asset Ratio-0.63
  • Q2 Cash Burn-30M/Day to 35M/Day
  • Cash To Zero at Current Burn-11/21
Delta Air Lines
  • Total Cash-15B
  • Total Debt-32B
  • Total Unencumbered Assets-10B
  • Debt to Asset Ratio-1.28
  • Q2 Cash Burn-100M/Day slowing to 50M/Day
  • Cash to Zero at Current Burn-4/21
United Airlines
  • Total Cash-13B
  • Total Debt-31.5B
  • Total Unencumbered Assets-12.5B
  • Debt to Asset Ratio-1.23
  • Q2 Cash Burn-40M/Day to 45M/Day
  • Cash to Zero at Current Burn-4/21
American Airlines
  • Total Cash-11B
  • Total Debt-46B
  • Total Unencumbered Assets-5B
  • Debt to Asset Ratio-2.875
  • Q2 Cash Burn-70M/Day slowing to 50M/Day
  • Cash to Zero at Current Burn-2/21
Alaska Airlines
  • Total Cash-3.25B
  • Total Debt-5.5B
  • Total Unencumbered Assets-1B
  • Debt to Asset Ratio-1.29
  • Q2 Cash Burn-8.65M/Day slowing to 6.65M/Day
  • Cash to Zero at Current Burn-10/21
Spirit Airlines
  • Total Cash-1.73B
  • Total Debt-3.8B
  • Total Unencumbered Assets-565M
  • Debt to Asset Ratio-1.66
  • Q2 Cash Burn-4M/Day
  • Cash to Zero at Current Burn-8/21
JetBlue Airways
  • Total Cash-3.65B
  • Total Debt-6B
  • Total Unencumbered Assets-1.58B
  • Debt to Asset Ratio-1.14
  • Q2 Cash Burn-18M/Day slowing to 10M/Day
  • Cash to Zero at Current Burn-7/21
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