Originally Posted by
Name User
UA posted a $1.3b profit while increasing capacity over 7%. They added 50 jets this year and will add over 100 next year.
AA losing money over summer is the same thing that happened to Spirit.
Who knows how this will turn out. Isom has had enough time to put his stamp on the operation, and it hasn't improved. At some point major decisions need to be made with regards to our route network, hubs, etc. to bring about a profitable and sustainable airline.
I'm starting to agree with Kirby that AA will dehub ORD. Two mid-America hubs seem excessive, and DFW already covers most, if not all, of ORD's routes and unlike ORD is actually profitable.
Originally Posted by
RippinClapBombs
Comparing American Airlines to Spirit Aviation Holdings is asinine. One airline owns zero assets because they burned the entire house down to keep the fire burning. The other has 65 something billion in assets and is making debt payments, in full—on time, but those payments cover the entirety of its yearly cash flow with a lousy few hundred million to spare. Their total cash flow (performance) is what’s concerning when in comparison to their two main competitors. Our saving grace is our business model strongly correlates with where the industry is heading, it’s just being ran very poorly.
As for the rest of your post—I completely agree.
That's a bit of a cop-out. Sure, AA has assets, but what's the point if expenses consistently exceed revenue? We're approaching a situation where we can't generate enough to keep this machine running on it's own. If the economy takes a **** which is looking more likely than not and the over 65 crowd stops going on the Viking river cruises in business class, then what?