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.
I'm comparing the fact AA lost money over the summer to Spirit, not the entire airlines financial situation.
If we are losing money over the summers that doesn't bode well for winter.
Just because you have assets doesn't mean those aren't leveraged to the hilt like ours are. That's like saying you own your house when the mortgage is 110% if it's value.
AA owes more than its assets are valued.