Not an economist or anything, but I would like to point out that as we go into an inflationary environment AA may not be in a bad spot so long as it can fix its cash flow. Long term secured debt will become ever more easy to pay off as the currency debases. This is the same reason why mortgage payments turn to peanuts thirty years later. Airlines provide a commodity service that is resistant to inflationary forces (in real terms), as fares will likely have to rise (in nominal terms), meanwhile interest and principals on debt remain constant. Debt can be a blessing and a curse