Originally Posted by
rickair7777
It should be as good as any airline stock can be in the current environment. Looks like all of their risk has been stabilized. Three questions...
- I assume CAL pays for ALL of their fuel?
- What are they going to do about the lease payments on those branded ERJ's?
- Is DAL paying leases for the LAX ERJ's?
Of course if CAL goes into Ch.11 all bets are off.
Personally, as a long-term investor, I stay out of airline stocks...too many things that can go wrong with no warning.
1) yes CAL pays all fuel
2) reduced lease payments for any of our "branded" aircraft were negotiated under the 7 yr cpa with CAL
3) DAL erjs are being returned to CAL and ending the lease agrrement on those aircraft between xjt and CAL. CAL plans to park them in the desert.
also of note is that XJT will be looking for pay cuts across the entire company soon... if they get them you could expect them to be profitable in the 4th quarter... 3rd quarter you will see too many one time expenditures to have a profit