American's Financial Analysis
10-03-2023, 08:52 PM
#22
Line Holder
Joined APC: Aug 2016
Posts: 80
thoughts on airlines actually being banks… see YouTube video below…
https://youtu.be/ggUduBmvQ_4?si=enH0fllyIaAR6tHl
https://youtu.be/ggUduBmvQ_4?si=enH0fllyIaAR6tHl
10-04-2023, 04:45 AM
#23
Gets Weekends Off
Joined APC: Mar 2016
Posts: 135
thoughts on airlines actually being banks… see YouTube video below…
https://youtu.be/ggUduBmvQ_4?si=enH0fllyIaAR6tHl
https://youtu.be/ggUduBmvQ_4?si=enH0fllyIaAR6tHl
10-04-2023, 05:38 AM
#24
Line Holder
Joined APC: Jan 2023
Posts: 73
thoughts on airlines actually being banks… see YouTube video below…
https://youtu.be/ggUduBmvQ_4?si=enH0fllyIaAR6tHl
https://youtu.be/ggUduBmvQ_4?si=enH0fllyIaAR6tHl
10-19-2023, 06:45 PM
#26
Banned
Joined APC: Oct 2019
Posts: 923
AA also tends to "underperform" to pay off massive amounts of debt or invest money elsewhere. Expect AA to have a slightly lower profit but have additional expenses in the form of large debt payments ahead of schedule.
It looks like AA is setting itself up for homeruns further down the road and happy to settle for singles now. In a few years, AA will still have the newest and largest fleet and will have paid their debt off. At that point, AA will be able to announce much larger and dramatic profits. That will drive investor values way up. Also at that time, AA's senior management will have even more shares of the stock. They will make out like bandits!
It looks like AA is setting itself up for homeruns further down the road and happy to settle for singles now. In a few years, AA will still have the newest and largest fleet and will have paid their debt off. At that point, AA will be able to announce much larger and dramatic profits. That will drive investor values way up. Also at that time, AA's senior management will have even more shares of the stock. They will make out like bandits!
10-19-2023, 07:22 PM
#28
Gets Weekends Off
Joined APC: May 2023
Posts: 518
Yeah, they are making out like bandits. $500M+ LOSS in arguably the best revenue pricing power time in recent history. It will only soften going forward and expenses continue to climb (fuel may moderate if things don’t explode in the middle east). AA simply cannot generate the kind of premium Delta and UA can. Delta and UA generate 90% of the industry profits, mind blowing stat. Things start to go south (which is looking more likely), AA will be right back in the bankruptcy conversation.
The notion that AA is uniquely prone to bankruptcy is based on dated information.
10-19-2023, 07:32 PM
#29
Gets Weekends Off
Joined APC: Feb 2008
Posts: 19,704
Yeah, they are making out like bandits. $500M+ LOSS in arguably the best revenue pricing power time in recent history. It will only soften going forward and expenses continue to climb (fuel may moderate if things don’t explode in the middle east). AA simply cannot generate the kind of premium Delta and UA can. Delta and UA generate 90% of the industry profits, mind blowing stat. Things start to go south (which is looking more likely), AA will be right back in the bankruptcy conversation.
10-19-2023, 07:35 PM
#30
Gets Weekends Off
Joined APC: Feb 2008
Posts: 19,704
Yeah and if the economy softens, then there goes your ability to charge a premium as well as international demand. Then, Delta will be shooting itself in the foot for bungling the customer loyalty program. United will either be taking in an airplane every other day at high interest rates with less revenue coming in to pay for them, or will have to put all growth plans on hold and fly a tired fleet (and figure out what to do with 800 orders).
The notion that AA is uniquely prone to bankruptcy is based on dated information.
The notion that AA is uniquely prone to bankruptcy is based on dated information.
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