View Poll Results: Will AA declare bankruptcy?
Yes
219
70.65%
No
91
29.35%
Voters: 310. You may not vote on this poll
Bankruptcy
#1041
Gets Weekends Off
Joined APC: Dec 2019
Posts: 1,318
And reality still doesn’t change when you go ad hominem. And yeah, BB- is junk too, although it’s a marginally higher class of junk than B-. But then they have a debt of about $3 Billion rather than ten times that amount, and two companies fighting to purchase them despite their debt.
And I too am talking about outlooks, but the rating plays a part in that, because the rating determines the coupon you must pay to get people to buy your bonds when you MUST refinance, and the outlook also affects that. Currently the Fed indicates it’s going to continue to raise rates - up to 3.4%. That’s an outlook. Historically, corporations rated B- (and stable) who sell bonds wind up paying a coupon of about 500 basis points (5%) above the Fed rate. What’s $35 billion times 8.3%? Is that a greater or lesser amount than the current $2 annual debt service?
There is your outlook.
But like I said, if you desire to count keyboard coup by pretending the FED situation isn’t important as far as “outlook” or a B- rating doesn’t affect outlook in the current business environment, go for it. Reality still doesn’t change.
And I too am talking about outlooks, but the rating plays a part in that, because the rating determines the coupon you must pay to get people to buy your bonds when you MUST refinance, and the outlook also affects that. Currently the Fed indicates it’s going to continue to raise rates - up to 3.4%. That’s an outlook. Historically, corporations rated B- (and stable) who sell bonds wind up paying a coupon of about 500 basis points (5%) above the Fed rate. What’s $35 billion times 8.3%? Is that a greater or lesser amount than the current $2 annual debt service?
There is your outlook.
But like I said, if you desire to count keyboard coup by pretending the FED situation isn’t important as far as “outlook” or a B- rating doesn’t affect outlook in the current business environment, go for it. Reality still doesn’t change.
#1042
Gets Weekends Off
Joined APC: Jan 2007
Posts: 187
#1044
Gets Weekends Off
Joined APC: Jan 2007
Posts: 187
I have no idea what NK's earnings will be in Q2, but even so, after AA Q2 earnings, their still projected to lose roughly $1 Bill this year.
#1045
Gets Weekends Off
Joined APC: Jun 2018
Posts: 184
My statement was obviously sarcasm. You're the one that made the statement of "worry about yourself". The most profitable quarter for every airline is typically always Q2.
I have no idea what NK's earnings will be in Q2, but even so, after AA Q2 earnings, their still projected to lose roughly $1 Bill this year.
I have no idea what NK's earnings will be in Q2, but even so, after AA Q2 earnings, their still projected to lose roughly $1 Bill this year.
filler
#1046
Gets Weekends Off
Joined APC: Dec 2019
Posts: 1,318
My statement was obviously sarcasm. You're the one that made the statement of "worry about yourself". The most profitable quarter for every airline is typically always Q2.
I have no idea what NK's earnings will be in Q2, but even so, after AA Q2 earnings, their still projected to lose roughly $1 Bill this year.
I have no idea what NK's earnings will be in Q2, but even so, after AA Q2 earnings, their still projected to lose roughly $1 Bill this year.
By the way where are you getting your “projection” from? For the year so far AAL is -1.066B. You’re saying that AA will only make 66m for the remaining two quarters to close out the year with a 1B loss?
#1047
Gets Weekends Off
Joined APC: Jan 2007
Posts: 187
So if AA posts 533m in the most profitable quarter and is still supposed to lose a 1 billion this year, then how much will Spirit lose as they can’t even make money in said most profitable quarter?
By the way where are you getting your “projection” from? For the year so far AAL is -1.066B. You’re saying that AA will only make 66m for the remaining two quarters to close out the year with a 1B loss?
By the way where are you getting your “projection” from? For the year so far AAL is -1.066B. You’re saying that AA will only make 66m for the remaining two quarters to close out the year with a 1B loss?
As far as AA goes, you seem to confuse profit and revenue. If you would like to read further, here is a link you could read: https://seekingalpha.com/article/452...vive-recession
#1048
Gets Weekends Off
Joined APC: Dec 2019
Posts: 1,318
Well, I'm not sure what the NK financials are.
As far as AA goes, you seem to confuse profit and revenue. If you would like to read further, here is a link you could read: https://seekingalpha.com/article/452...vive-recession
As far as AA goes, you seem to confuse profit and revenue. If you would like to read further, here is a link you could read: https://seekingalpha.com/article/452...vive-recession
#1050
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