AAL currently has 10.2 Billion liquidity and they are about to close another 6 billion in financing (cares loan + debt offering). So roughly 16 billion. They just reported on the conference call today that they can borrow an additional 4 billion against acft and I believe it was around 6 more against the mileage plan if needed.

Cripe! It's the Gorilla in the room of massive debt potential.

Thanks for the update.

Would have been better off buying Apple or Amazon. Management needs to stick to running our own airline, and not investing in others like we’re the second coming of Berkshire Hathaways. Warren Buffet EB is not...

or no JV’s at all in the case of SW

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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

[/QUOTE]


Out of all of the information available, these are the key numbers. Management is focused on two things: making sure the operations ard generating cash, and being free cash flow positive by the end of the year. The first part is accomplished and the second is within reach as long as traffic starts growing again at some point between now and the end of the year.

Correct. GAAP accounting is for regulatory compliance. Focus on free cash flow if you want to compare businesses, especially when they are in distress.

I think the second part will be accomplished largely by staffing reductions.

Actually, we cannot reduce costs enough to be free cash flow positive - the gap is just too big and costs are going to start rising (we are at cost bottom now). It can only be accomplished through more revenue.

I guess I would have thought 1 October would be the cost bottom, when thousands of Delta employees hit the street or take massive pay cuts. What makes the current moment the cost bottom?

CARES Act

(filler)