Originally Posted by
bababouey
There will be no buybacks, dividends, and major capex is done. Mx is on the same team now, and we’re down to 4 fleet types. I know it takes a little more than just reading the headlines, but if revenue is in the neighborhood of what it used to be, then we’ll be fine. If this is a multi year slump, then yes, we’ll sink.
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Most analysts, including the airlines themselves, are thinking it will take years to get back to 2019 numbers, if ever. I'm not reading headlines, I am reading the financial data, like the Balance Sheet and Income Statements.
Q1 2020 only saw a drop of roughly 25% in revenue from Q4 of 2019 and they lost 2.2B. The Q2 and Q3 numbers are going to be a bloodbath. Taking on massive long term debt, when you're already highly leveraged, and have essentially no revenue isn't a viable strategy for long term survival. The problem is that they can't really liquidate assets, either, as there are no buyers.