aggieflyboy

He flys for AA now, so he changed his tune

ImSoSuss

I always tell it how it is.

ImSoSuss

I've been flying for AA for a while now, son.

C2078

I guess you don’t read financial statements very often. It’s all in plain sight. Yes, management has said they want to pay down debt more aggressively, but if you look at the cash flow and the tentative repayment schedule, it shows 2030 with still a significant amount of debt, not counting all the new planes that will need to be financed, adding more debt. The cash flow and projected profits simply doesn't jive with their intention. What does seem to be the case is their laser focus on profitability. The new pilot contract add around $9B over 4 years, a tad over $2B per year. Think about it, in a good year, AA will earn a pre tax profit of around $4B. The pilot increase will in itself eat half of that. The numbers are there. Not saying it’s all gloom and doom, I do think AA is on the right track, but AA had a much different tone when announcing 2Q results, all sunshine and rainbows, and look how quickly things change. Their debt reduction plan is based on all factors aligning, which has already changed. If demand slows or starts to drop, management will most likely curtail capacity, stop hiring and let attrition run its course, which is what I think will happen sometime next year. That in itself will show fiscal discipline and being serious about profitability at any cost.

By the way, debt repayments are not expenses, they are capital expenditures, cash flow issue. Now interest payments are an expense charged against revenue. Don’t confuse income statement items with cash flow usage.

Pilot X

I think that guy that he used to fight with got ahold of his account

ACEssXfer

LOL

I have a bridge. Interested?

The company is never going to go to 0 debt. Large corps don't do that. it's limiting.

Dunkin

The big 3 all have the ability to pass on the added pilot and fuel costs to their customers over time, it might effect earnings for a quarter or two but double digit margins should return by next summer. The majority of the big 3’s customers have household incomes of over $100k a year and many of them have low mortgage payments coupled with rising wages. The boomers will be retiring in mass this decade, they will be traveling a lot and buying up premium seats. Inflation is hurting the LCCs much more than the legacies as most of their customers are more price conscience.

Milksheikh

honestly nothing to worry about. Too big to fail. I wouldn’t consider it as a prospective applicant.

PNWFlyer

Are you planing on flying airplanes or working in the finance department? If you are applying to be a pilot this is not something you should even remotely concern yourself with.

Al Czervik

Late to the party… Excargodog is at AA???!?