Bergman

We have discovered who doesn’t have a finance degree!

FYI I’m in the same boat. It was all Greek to me.

m3113n1a1

United took big write downs in Q1, we took more in Q2.

Overall, the most important number to look at is cash burn and then liquidity. United is winning the race, but we're all basically in the same zone. American looks the most at risk, but not excessively so.

WhiskeyDelta

Didn’t United’s liquidity include the CARES loan? If so, we are ahead in liquidity and cash burn at the end of June.

Drum

so maybe UAL flying more cargo and upping capacity helped them on revenue side of the equation perhaps?

deltabound

We're fooked, I tell ya! FOOKED!


Semper in excreta, baby. My new airline motto.


The obstacle is the way.

Dash8Pilot

TL : DR version is we took a lot of non-cash write downs on assets. Approximately $4.5 billion.

Longer answer, roughly $2 billion of that was in equity investments for LATAM, AeroMexico, and Virgin Atlantic. The other $2.5 billion was reducing the balance sheet value of the aircraft and parts inventory for the retiring aircraft that were announced.



United killed it on cargo, up 36% year-over-year, but passenger capacity was less than ours.

Trip7

Unless I missed it somewhere, looks like Delta is the only Legacy that gave a quarterly cash flow analysis. UAL and AAL only provided 6 month/YTD cash flow analysis. Here are all three.

Take aways:
Even with 60% Caps, Delta has produced positive Cashflow of $68 Million from Operations in 2020. UAL has lost $67 million and AAL a whopping $1.07 Billion.

Free Cash flow, which is Operating Cashflow minus Capital Expenses, was -$1.1 Billion for Delta, -$2.07 Billion for United, and -$2.3 Billion for American

This shows how much help the Cares Act has provided as airlines have essentially been operating with labor paid by the Gov't. The cash burn numbers the airlines reference do not include the Cares Act Money. Airlines have been raising Billions in cash to weather eyewatering cashflow losses when the Cares money runs out.

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PilotFrog

Am I reading it correctly that Delta has $11.8B in Cash, United has $6.6B, and American has $467M?!?

Drum

I don't know what I'm reading. I wish he woud give the exec summary.

Anyway, it won't matter, in a year not much will change other than we've burned thru our cash. cause we are not focusing on the revenue side of the equation. that's why I think furloughs are going deeper than the 2558.

I thought earlier in June we'd be recovering by May next year. However, we are stupid scared little monkeys and masks and lower caps are in our foreseeable future. Int'l flying, forget about it. That's at least 3+ years from coming back to summer 2019 levels. Get ready for the long slog.

We can't give them concessions. They'll be beating us up all along the way wanting them. We'll recover. Better to recover into what our PWA is now, than to start clawing back concessions.

Trip7

Technically correct. That's just cash available at this second sitting in a business checking type account. Long story short American has most of its cash($9.351 Billion) sitting in short term investments ie short term treasury bonds

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