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
10-04-2022, 03:48 PM
#1281
Perennial Reserve
Joined APC: Jan 2018
Posts: 11,609
Originally Posted by hercretired
I don't believe AA's debt is "junk" status officially
Depends on the individual bond issue. Some bonds, collateralized by newer aircraft, are much higher. Even NK has some A and AA rated bonds outstanding:
But overall, Fitch rates the company’s creditworthiness as junk - both for AA and NK, B- for AA and BB- for NK.
https://www.fitchratings.com/entity/...p-inc-80361387
https://www.fitchratings.com/entity/...s-inc-93771290
That is typical for airlines currently (post COVID), some worse than others.
Example:
SPECIAL REPORT
Stagflation would heighten liquidity and refinancing risks for some U.S. airlines and auto suppliers, with rising interest rates having the potential to add further pressure. Fitch Ratings views airlines as having medium to high rating risk under a scenario of sustained high inflation and sharply lower economic growth. This is due to cyclicality, energy dependence, already negative FCF and significant upcoming maturities. Credit effects would vary by issuer. The Rating Outlooks for Delta Air Lines (BB+), United Airlines, Inc. (B+), Southwest Airlines Co. (BBB+), Spirit Airlines, Inc. (BB–), JetBlue Airways Corporation (BB–), Alaska Air Group, Inc. (BB+) and Air Canada (B+) are already Negative.
Stagflation Would Raise Liquidity and Refinancing Risks for Airlines and Auto Suppliers (Airlines, Auto Suppliers Are More Exposed Than Auto Manufacturers)
Thu 05 May, 2022 - 4:12 PM ETStagflation would heighten liquidity and refinancing risks for some U.S. airlines and auto suppliers, with rising interest rates having the potential to add further pressure. Fitch Ratings views airlines as having medium to high rating risk under a scenario of sustained high inflation and sharply lower economic growth. This is due to cyclicality, energy dependence, already negative FCF and significant upcoming maturities. Credit effects would vary by issuer. The Rating Outlooks for Delta Air Lines (BB+), United Airlines, Inc. (B+), Southwest Airlines Co. (BBB+), Spirit Airlines, Inc. (BB–), JetBlue Airways Corporation (BB–), Alaska Air Group, Inc. (BB+) and Air Canada (B+) are already Negative.
10-05-2022, 10:21 AM
#1284
Perennial Reserve
Joined APC: Jan 2018
Posts: 11,609
Originally Posted by Rroku
Copy&Paste just can't help himself
https://ib
10-05-2022, 02:41 PM
#1285
Gets Weekends Off
Joined APC: Mar 2022
Posts: 243
Originally Posted by Excargodog
10-08-2022, 07:20 PM
#1289
Gets Everyday Off
Joined APC: Aug 2016
Position: Fully Retired
Posts: 7,000
Originally Posted by Wingedbeast
given whats coming in the next month economically especially in the energy sector AA will be in bad shape.
What is it?
OPEC cutting production? Covid 2.0? The recession? Interest rates going up? Inflation rates slowing? Republicans win one or both houses of Congress, slowing the Democrats spending stampede?
10-09-2022, 05:31 AM
#1290
Gets Weekends Off
Joined APC: Dec 2019
Posts: 1,879
Long term, OPEC+ cutting production isn’t going to stop oil prices from dropping further, but will slow them and increase the price floor.
right now it is on a uptick but they must be projecting a doozy of a slow down coming
right now it is on a uptick but they must be projecting a doozy of a slow down coming
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