Originally Posted by
joepilot50
While this is true, what makes this double whammy of a gut punch is Delta and United are doing their fleet renewal through cash and still raking in the profits. So no increased debt as they take on new planes and still kicking our butt financially. Granted a downturn may change their paying cash for the new planes plan and take on debt, but they are in a good position to do so.
I am skeptical of United's growth marketing of how every plane on the books is growth vs replacement, but even if that changes and most of the planes turn from growth to replacement, United won't be hampered like we are with their fleet renewal.
Again, in fairness,much of the AA mainline fleet got parked in the desert during COVID while the debt service and age related depreciation continued without any noticeable revenue being produced. United’s new aircraft have gone straight into revenue service.
Although I agree that their new aircraft won’t be all growth. They have some elderly 319s and 757s that they will be retiring.