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
07-13-2021 | 03:17 PM
#531
Perennial Reserve
Joined: Jan 2018
Posts: 14,237
Likes: 254
• Carried 44M passengers in the 2nd Quarter, more than any other carrier.
• Expected to report a slight Q2 profit including special items. Loss of 1.1B excluding special items. Better than expected.
• The month of June generated a cash build of 1m per day. that’s excluding special items and including principle debt payments.
https://apple.news/A0gqEwFQDSBKm9RnYSrdpYg
• Expected to report a slight Q2 profit including special items. Loss of 1.1B excluding special items. Better than expected.
• The month of June generated a cash build of 1m per day. that’s excluding special items and including principle debt payments.
https://apple.news/A0gqEwFQDSBKm9RnYSrdpYg
FORT WORTH, Texas (AP) — American Airlines said Tuesday it expects to report roughly break-even results for the second quarter thanks to $1.4 billion in special items, mostly federal pandemic aid that covered most of the airline’s payroll costs.
Without the federal relief, however, the airline said it will post an adjusted loss of up to $1.2 billion for the April-through-June period. That will be its smallest adjusted loss since the pandemic started, reflecting rising passenger traffic and revenue.
American said that second-quarter revenue will be about 37.5% lower than during the same period of 2019, slightly better than the airline had previously forecast.
Without the federal relief, however, the airline said it will post an adjusted loss of up to $1.2 billion for the April-through-June period. That will be its smallest adjusted loss since the pandemic started, reflecting rising passenger traffic and revenue.
American said that second-quarter revenue will be about 37.5% lower than during the same period of 2019, slightly better than the airline had previously forecast.
07-13-2021 | 03:35 PM
#532
Line Holder
Joined: Sep 2014
Posts: 1,691
Likes: 21
From: 60’s Tech, Right
Either way, nice to see things trending in the right direction!
07-13-2021 | 03:55 PM
#533
Gets Weekends Off
Joined: Dec 2019
Posts: 1,318
Likes: 0
The key point here is that for the month of June AA was cash positive excluding special items and including principle debt payments. But yes Q2 will post an operating loss of about 1.1B.
07-13-2021 | 04:33 PM
#534
Perennial Reserve
Joined: Jan 2018
Posts: 14,237
Likes: 254
We know they had interest payments. They had $371 million in interest expense last quarter which was up $120 million YOY.
Second quarter interest expense for 2021 will likely be higher still since they’ve increased their borrowing since 2020.
. American Airlines Group Inc. raised $10 billion of debt last week to repay government loans and keep its business running as the economy recovers. The deal also boosted the company’s debt by about 20%, transferring much of that risk onto debt investors.
American has survived the pandemic by taking on $22 billion of new debt, bringing its total obligations to $50 billion. Borrowing saved the company—and others like Carnival Corp. and AMC Entertainment Holdings Inc.—from bankruptcy, but it comes with higher interest costs that could affect profitability for years to come.
American has survived the pandemic by taking on $22 billion of new debt, bringing its total obligations to $50 billion. Borrowing saved the company—and others like Carnival Corp. and AMC Entertainment Holdings Inc.—from bankruptcy, but it comes with higher interest costs that could affect profitability for years to come.
07-15-2021 | 03:08 AM
#535
Banned
Joined: May 2017
Posts: 2,012
Likes: 0
For a long time, the question was “will American make a profit?”
ok, they’re back to making a profit! Awesome!
The question now is “can American make enough profit”. Enough to service their debt and enough to be viable going forward.
ok, they’re back to making a profit! Awesome!
The question now is “can American make enough profit”. Enough to service their debt and enough to be viable going forward.
07-15-2021 | 05:17 AM
#536
Gets Weekends Off
Joined: Jun 2018
Posts: 184
Likes: 0
If they are making a profit that includes their debt payments.
07-15-2021 | 05:24 AM
#537
Gets Weekends Off
Joined: Feb 2012
Posts: 4,601
Likes: 0
From: CRJ FO
07-15-2021 | 05:41 AM
#538
Perennial Reserve
Joined: Jan 2018
Posts: 14,237
Likes: 254
No, it does not. It does not currently even cover their debt SERVICE far less debt payments which aren’t due - in most cases - until the bond tranche reaches maturity.
What did you thing EBIDTA stands for? It is Earnings BEFORE Interest, Depreciation, Taxes, and Amortization.
It’s a ‘profit’ before you have paid your rent/mortgage, upkeep on your equipment, local, state, and federal taxes, and lease costs.
Except you actually DO have to pay those things, which is why earnings per share are negative to the tune of $1.75 a share or so for this quarter. That’s negative $1.75 a share multiplied by 656 million shares since the loss per share (like any future profit per share) has also been affected by the stock dilution from all the sales of shares at low prices during COVID. Otherwise the loss per share would have even been higher.
https://www.cnbc.com/2021/01/29/amer...big-rally.html
What did you thing EBIDTA stands for? It is Earnings BEFORE Interest, Depreciation, Taxes, and Amortization.
It’s a ‘profit’ before you have paid your rent/mortgage, upkeep on your equipment, local, state, and federal taxes, and lease costs.
Except you actually DO have to pay those things, which is why earnings per share are negative to the tune of $1.75 a share or so for this quarter. That’s negative $1.75 a share multiplied by 656 million shares since the loss per share (like any future profit per share) has also been affected by the stock dilution from all the sales of shares at low prices during COVID. Otherwise the loss per share would have even been higher.
https://www.cnbc.com/2021/01/29/amer...big-rally.html
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