Old news

AA paid off 6b in the last year.
AA is currently only carrying 6b more debt than UAL.
UAL has yet to replace their fleet.
AA had 25% more flights than closest competitor in Q2.

That being said, AA has some serious streamlining to do. I believe that is in the works with all 3 owned regionals that have been a financial anchor.

 

I mean, the lift has to come from somewhere. I don’t know what kind of 4D chess they think they’re playing with the recent pay raises there, but they seem adamant now on having the metal move.

Lots of recent flows (myself excluded) have been having some twinges of regret on that front. Good friend of mine could’ve now been still in the sim making 250K, now he’s making $90/hour on reserve and commuting until December.


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AA borrowed at the beginning of the pandemic to build liquidity. They have been paying that down but the long term debt hasn't been touched.

 

Is an extra 250k over 2 years really worth possibly 4000 seniority numbers?? Also they crazy pay at the WO isn’t going stop their attrition problems

 

I think it’s interesting that a possible pay increase is listed as a negative when 1000 or so of the highest paid crewmembers are coming off the list every year and $90/hr FO’s are replacing the upgrades.

The way you eat an elephant. One bite at a time.

 

Other voices heard from:

https://seekingalpha.com/article/452...vive-recession

https://viewfromthewing.com/why-american-airlines-could-face-chapter-11

It’s tough to make predictions - especially about the future.
Yogi Berra

 

You need to do a little more research.

 

Paying down the debt, debt that costs less, and 2Q22 $476M in the black. Everyone has issues, but its a step in the right direction. And hey, doesn't UA have more debt now? What about their bankruptcy? I mean...right?

 

You seem above quoting those authors.

 

AA will be sub DL debt by the end of 2025:


American produced revenues of $13.4 billion in the second quarter, a 12.2% increase versus 2019 and a record for any quarter in company history. This record revenue was achieved while flying 8.5% less capacity than the same period in 2019, and there remains significant revenue potential going forward to the extent business and international travel improve further.
Domestic leisure travel remains very strong and surpassed 2019 levels in the second quarter and American also saw improvements in corporate and government revenue in the quarter. Demand for international travel also improved steadily during the second quarter and the company expects this to continue following the lifting of the COVID-19 testing requirement for inbound travel to the U.S.

Liquidity and balance sheet

American ended the second quarter with $15.6 billion of total available liquidity. Total debt reduction continues to be a top priority and the company remains on track to reduce overall debt levels by $15 billion by the end of 2025.
In the second quarter, the company made $1.0 billion in scheduled debt and finance lease payments, including paying off the remaining $433 million outstanding balance of its $750 million unsecured senior notes that matured in June. To date, American has reduced its overall debt by $5.2 billion from peak levels in the second quarter of 2021.