[QUOTE=tommy2times;3466207]https://liveandletsfly.com/american-airlines-stock-bankruptcy/[/QUOTE]
$75 billion in debt.

$75 billion in debt.[/QUOTE]

Would it be inconsiderate to wear my "it's time" lanyard?

Does anyone actually understand the terms and rates of airline financing? How often do they have to refinance their debt? In times of record inflation, debt is good to have, if done properly. My 2.75% mortgage looks like free money right now.

AA will lose 5000 high cost pilots in the next several years. Fuel prices will go down. Business travel will return and so will international.

On paper, it's not a pretty picture. However, I'm not terribly worried... yet.

This is my question as well. How much debt is fixed verses variable rate?

Liabilities

Thank god Kyle the freelance travel blogger figured it all out. Institutions such as Vanguard and BlackRock must be clueless.

Total liabilities aren't debt. But like Kyle, some people don't seem to get it. AAL's debt load is roughly 35bn. That's ~4bn more than UAL.

https://www.macrotrends.net/stocks/charts/AAL/american-airlines-group/long-term-debt
https://www.macrotrends.net/stocks/charts/UAL/united-airlines-holdings-inc/long-term-debt

and Don't let the negativity on these forums get to your head. Take the first legacy class and don't commute.

Total liabilities isn’t total debt, but long term debt isn’t total debt either.

Folks keep citing current debt or long term debt. Current debt = debt that matures within 12 months. Long term debt = debt that matures in greater than 12 months. Current + Long term debt = Total debt.

Total debt is somewhere around ~$45B for AAG. DL is ~$34B and UA is ~$39B. That said, AAG seems to be trending in a better direction than the last couple years according to some of the credit rating organizations. Fitch listed AAG as “stable” most recently in March:

https://www.fitchratings.com/researc...ble-03-03-2022


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no. It’s 75 billion in debt. I just read it on the internets.

Stable at B- is not good. This is a Fitch rating of B.

https://i.ibb.co/YfjbgtX/DEF2-AF54-A...9-C531-BBC.jpg


B- is worse than that.

it’s the same creditworthiness as Angola…

https://i.ibb.co/smhZdxq/89-A0-C6-E7...-B0-D23-FB.jpg


https://i.ibb.co/kgMt8XK/45781-B2-A-...51-F45-CA0.jpg

I’m not dumping on AA or their management. Nobody anticipated COVID and the government handled it poorly. Nobody anticipated the government would so mismanage the economic recovery to produce today’s inflation (OK, maybe Rand Paul and Larry Summers did. https://www.politico.com/news/2022/0...22-22-00047233), but don’t be in denial about the fix they are in. They are going to have to refinance almost all that debt they took on when interest rates were low at far higher interest rates and they are already paying $2 Billion a year in debt service even at current rates.

That is not an enviable situation to be in.

The government mismanaged just about every aspect of Covid. Lockdowns etc simply didn’t work. Look at the daily case rates/deaths today. They’re higher than they were in 2020 and 2021. Yet here we all are going about our lives. So what was it all for? Why shut everything down and pump Trillions into the economy and induce generational inflation and economic doldrums?