AAL Downgrades and 1Q20 Earnings

[Kev3188]

Q1 results reported:

-$2.2B loss

-Ended Q1 with $6.8B of liquidity

http://news.aa.com/news/news-detail...020-Financial-Results-CORP-FI-04/default.aspx

 

[1AA]

The government considers air transportation a essential part of commerce in this country. The government pumped money in the airlines to keep them flying as much as possible. The government wants to make sure the airlines are financially responsible to maintain operations. Stepping in and preventing stock buybacks and executives compensation are two ways that will keep them financially stable to some point. So I believe that since kind government regulation is warranted. The airlines need to be around and they can't dry up the company financially for personal gain and short term existence. This industry needs visionaries who can plan for the long term success of airlines. The easy road to BK is too easy for airline executives. They suck companies dry in good times and in bad times they point fingers at others for their shortcomings. Then they bail out with compensation and the employees, passengers and shareholders get screwed. That's why some kind of regulation is needed.

 

[1AA]

Q1 results reported:

-$2.2B loss

-Ended Q1 with $6.8B of liquidity

http://news.aa.com/news/news-detail...020-Financial-Results-CORP-FI-04/default.aspx

"Never before has our airline, or our industry, faced such a significant challenge,' said American Airlines CEO Doug Parker.

He also said we will never lose money again. Does he have the experience to weather the storm and pull AA out from under the mounting losses ahead of us?
Will he bail out?
Will he steer the company into BK?
A challenging time for DP.

 

[Rogallo]

"Never before has our airline, or our industry, faced such a significant challenge,' said American Airlines CEO Doug Parker.

He also said we will never lose money again. Does he have the experience to weather the storm and pull AA out from under the mounting losses ahead of us?
Will he bail out?
Will he steer the company into BK?
A challenging time for DP.

Or........

D; All the above

 

[Kev3188]

Every carrier has been given (?) the opportunity to build from the ground up. Whether that means fleet, network, people, etc.

It will be interesting to see which CEOs-and which union heads-emerge as thought leaders here, and which default to the old ways of doing things (rampant outsourcing, fighting labor, etc.).

 

[1AA]

Every carrier has been given (?) the opportunity to build from the ground up. Whether that means fleet, network, people, etc.

It will be interesting to see which CEOs-and which union heads-emerge as thought leaders here, and which default to the old ways of doing things (rampant outsourcing, fighting labor, etc.).

Lets just hope that big mouth Samuelson doesn't open up again.
If he wants to blow off steam then let him go shovel coal in the boiler on his MTA steam locomotive where he belongs.

 

[NewHampshire Black Bears]

Time to Lure " Uncle BOBBY ", back to FT. WORTH, like YESTERDAY !!

 

[Kev3188]

Lets just hope that big mouth Samuelson doesn't open up again.
If he wants to blow off steam then let him go shovel coal in the boiler on his MTA steam locomotive where he belongs.

Let's hope.

I know he gave all the Ready Room gas bags a chubby when he unleashed on Isom, but that's not what's needed right now.

He's seemed a bit more restrained in his recent media interviews while still holding a hard line, so maybe that's a good sign. Speak softly/carry a big stick and all that...

 

[1AA]

Let's hope.

I know he gave all the Ready Room gas bags a chubby when he unleashed on Isom, but that's not what's needed right now.

He's seemed a bit more restrained in his recent media interviews while still holding a hard line, so maybe that's a good sign. Speak softly/carry a big stick and all that...

He must have realized how airline labor operates compared to the trains.

 

[eolesen]

American Airlines (AAL) reported deeper-than-expected losses for Q1 and announced more capacity cuts on Thursday, ahead of United Airlines (UAL) results after the close.

The results round out the earnings season for the four major U.S. carriers. Those airlines, along with the rest of the industry, are bracing for more financial turmoil as the coronavirus pandemic keeps flight cabins virtually empty, raising questions about what air travel might look like for passengers in the years ahead.

American Airlines Earnings Report
Estimates: Wall Street expects American Airlines earnings to swing to a $2.16 per-share loss. Revenue was forecast to fall 14% $9.15 billion

Results: Per-share loss of $2.65 on revenue of $8.5 billion. American ended Q1 with $6.8 billion of available liquidity and expects to end Q2 with $11 billion. It sees an average Q2 cash burn rate of approximately $70 million per day, though that should slow to $50 million by June.

American expects to cut 2020 operating and capital expenditures by more than $12 billion. That will come in part by reducing capacity by about 80% in both April and May, and 70% in June, as well as retiring certain older aircraft ahead of schedule. In addition, nearly 39,000 employees have opted for an early retirement, a reduced work schedule or a partially paid leave.

Stock: American Airlines stock sank 8% to 11.63. Delta Air Lines (DAL), which reported earnings last week, and Southwest (LUV), which reported on Tuesday, fell 3.6% and 1.2%, respectively.

Delta also announced Thursday that it expects to end Q2 with more than $12 billion in cash after raising $5 billion in new financing and plans to apply for another $4.6 billion bailout loan.

 

[eolesen]

Time to Lure " Uncle BOBBY ", back to FT. WORTH, like YESTERDAY !!

You’ll probably be back as CEO before Crandall will. He’s 84 and has already said repeatedly that he won’t return because he physically can’t do the 18 hour days anymore.

 

[Rogallo]

It will be interesting to see which CEOs-and which union heads-emerge as thought leaders here, and which default to the old ways of doing things (rampant outsourcing, fighting labor, etc.).

Lets just hope that big mouth Samuelson doesn't open up again.
If he wants to blow off steam then let him go shovel coal in the boiler on his MTA steam locomotive where he belongs.

Bring back Jim Little from the TWU. That f'ing A'''hole would make it a breeze when the company comes for concessions.

Oh, and Phat Don Videtich too that POS!

 

[Rogallo]

You’ll probably be back as CEO before Crandall will. He’s 84 and has already said repeatedly that he won’t return because he physically can’t do the 18 hour days anymore.

Me thinks NHBB is at least 84 and senile too

 

[eolesen]

He must have realized how airline labor operates compared to the trains.

He’s too used to dealing with politicians and public sector bureaucrats who are never held accountable for costs and simply say yes to the union’s demands to keep the union vote safe...

 

[eolesen]

Me thinks NHBB is at least 84 and senile too

Senile for certain. He’s retired from AA and did what I thought was 10 years playing choo choo train so he could retire from Amtrak, so I’m guessing that would put him around 74.