Originally Posted by
Clear Right
Agreed, but I’m not 100% in agreement with the AA recovery argument. The Debt-to-Equity ratio for B6 as of Dec 2023 was 3.15. The Debt-to-Equity ratio for AA is -13.12. Notice the negative sign in front of AA’s, that’s not exactly a better recovery than B6. Not saying your argument is wrong and they don’t have the capacity to service that debt, but I wouldn’t say their balance sheet is better. Remember capacity discipline and revenue affect all airlines, even the Big 4. Too much capacity, less revenue for all airlines to service debt, even the Big 4.
Well, I certainly didn't say AA had a better balance sheet. Just said they have recovered better. They are profitable, we are not. Just saying nothing is as simple as one metric without context. United has an aggressive growth plan, but I also think they plan on taking that capacity/revenue from what they see are 1-2 failing ULCCs/LCCs.