ULCC or American?
03-12-2020 | 10:19 AM
#132
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From: guppy CA
03-12-2020 | 10:28 AM
#133
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03-12-2020 | 10:41 AM
#134
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From: Airplanes
I read an article today that stated as a percentage of cash on hand versus operating expenses Spirit has 22% on hand, Southwest was 11%, and AA and DAL were 6-8%. Of all the airlines to run on cash on hand the longest NK is probably best positioned. I'll try to find the article.
03-12-2020 | 10:50 AM
#135
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Big-3 has the Europe, Asia "exposure" and is taking the big hit from lack of business/corporate travelers, due to various bans, etc.
Spirit / Frontier less so. I wonder about Sun Country, etc. type carriers. Airlines with MAX in the fleet such as SWA may suffer a "double whammy" if the MAX does not come back soon.
Lets wish EVERYONE good luck and hope we pull thru this.
Spirit / Frontier less so. I wonder about Sun Country, etc. type carriers. Airlines with MAX in the fleet such as SWA may suffer a "double whammy" if the MAX does not come back soon.
Lets wish EVERYONE good luck and hope we pull thru this.
03-12-2020 | 10:55 AM
#136
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From: 737 CA
ULCC or American?
Big-3 has the Europe, Asia "exposure" and is taking the big hit from lack of business/corporate travelers, due to various bans, etc.
Spirit / Frontier less so. I wonder about Sun Country, etc. type carriers. Airlines with MAX in the fleet such as SWA may suffer a "double whammy" if the MAX does not come back soon.
Lets wish EVERYONE good luck and hope we pull thru this.
Spirit / Frontier less so. I wonder about Sun Country, etc. type carriers. Airlines with MAX in the fleet such as SWA may suffer a "double whammy" if the MAX does not come back soon.
Lets wish EVERYONE good luck and hope we pull thru this.
Yet, Spirit is down 30% today while the others are around 10-15%.. Agreed, hopefully we all come out of this ok.
The Max being grounded for SWA right now actually helps as it's less capacity to fill.
03-12-2020 | 11:03 AM
#137
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UAL (down 20% by the way) has 247M shares outstanding.
Exits out of airline stocks "hurt" the share prices of the smaller companies more than the bigger companies, all things being equal.
On the flip side, Spirit/etc do not have 25,000 employees on payroll, or 50 787's that are sitting around. Flying half full Airbus's FLL to San Juan is different than empty 777s to China.
03-12-2020 | 11:08 AM
#138
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From: 737 CA
Spirit has 68M shares outstanding. It is basically a micro-cap/small-cap stock.
UAL (down 20% by the way) has 247M shares outstanding.
Exits out of airline stocks "hurt" the share prices of the smaller companies more than the bigger companies, all things being equal.
On the flip side, Spirit/etc do not have 25,000 employees on payroll, or 50 787's that are sitting around. Flying half full Airbus's FLL to San Juan is different than empty 777s to China.
UAL (down 20% by the way) has 247M shares outstanding.
Exits out of airline stocks "hurt" the share prices of the smaller companies more than the bigger companies, all things being equal.
On the flip side, Spirit/etc do not have 25,000 employees on payroll, or 50 787's that are sitting around. Flying half full Airbus's FLL to San Juan is different than empty 777s to China.
I won't pretend to be an economist as I fly planes for a living. Truth of the matter is, we are are all hurting right now regardless of our paint scheme.
03-12-2020 | 11:11 AM
#140
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Depending on the rebound, this seems like a prime time for the legacy airlines to snuff out competition. Both ULCCs will tell you they are designed to compete in tough economic conditions, but I don’t think we’ve seen a situation where demand falls AND the price of fuel falls. CASM is going to drop like a rock at the legacy airlines, while having a war chest of cash and the ability to park paid off aircraft. You combine that with the retirements effectively taking care of workforce reduction, the ULCC’s may actually be in trouble.
Being at an ULCC, I am a little more than alarmed at this point.
Being at an ULCC, I am a little more than alarmed at this point.
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