Well Above $3.5 Billion

[Hatu]

AMR on Thursday said it expects to end the third quarter with cash and short-term investment balance well above $3.5 billion, with mainline unit revenue increasing 11.5 percent to 12.5 percent for the period.

http://yahoo.reuters.com/financeQuoteCompa..._wen9594_newsml

 

[FWAAA]

Unit revenue up 12% year over year???

This is fantastic news!!

AA may lose money, but it won't be a big loss with that kind of RASM increase.

 

[cybercat]

AMR on Thursday said it expects to end the third quarter with cash and short-term investment balance well above $3.5 billion


That should be enough to get you through the winter. 😀

 

[PRINCESS KIDAGAKASH]

Well,if I went out and took out several cash advances on my credit cards and maxxed them out, I could say I have 3.5 billion dollars in the bank too. 🙄 AMR is still 20+ billion in debt and this Hurricane that's coming surely ain't gonna help out the bottom line either.

 

[TWU informer]

$3.5 Billion,

Pfffttt, I could take my wife to dinner, the movies, ice cream, and get her flowers with that.

 

[Skymess]

AMR is still 20+ billion in debt and this Hurricane that's coming surely ain't gonna help out the bottom line either.

That's 14B. in debt.

 

[Albatroz]

That's 14B. in debt.

[post="304199"][/post]​

Actually.......right now.........it is very close to 25B.......

"With Fort Worth, Texas-based American's total debt load exceeding $22 billion including aircraft leases, the carrier needs to increase profit to service that debt, according to The Dallas Morning News' Thursday editions."

And this was one year ago. The debt, since then, increased. Any small profit was not enough to cover pension payments, service debt, pay for services and goods, etc.

But, hey, nothing to worry! You will be okay. Management is realy nice and loves the employees.

 

[WorldTraveler]

Delta and Northwest said they would be just fine not too long ago too.

 

[B.O.B.]

Delta and Northwest said they would be just fine not too long ago too.

[post="304237"][/post]​

WorldTraveler aka Mr. Airline, I know everything about the airlines futures. What do you think is going to happen? You know it all, so spill it.

You remind me of the picture of a Cartoon drawing of an AA aircrfat with the pilot making a PA at the APFA HQ that says...

"This is your CEO, President, CFO, Pilot, Mechanic, Ramp Agent, Reservations Agent, Gate Agent, Crew Tracker, Crew Scheduler, Bob Crandall speaking..."

Bob Crandall was the "Jack of all Trades" that thought he knew everything and everyone's job. Are you Bob Crandall's clone?

 

[Bagbelt]

Does it really matter if anyone goes bankrupt? The "pushers" that live off this industry will keep it going no matter what. They'll cut our pay and retirement one way or another, at this point plan ahead. What bothers me more than anything else is to see a way of life disappear. I remember looking forward to going to work, we had a ball. At one time the Twu shut the station down because mgt. fired a agent for wearing a Twu pin. Now they can throw thousands of people out the door and what?

 

[StraaightTaalk]

Delta and Northwest said they would be just fine not too long ago too.

[post="304237"][/post]​

So bitter you can hardly contain yourself.

Loser.

 

[Bob Owens]

Actually.......right now.........it is very close to 25B.......

"With Fort Worth, Texas-based American's total debt load exceeding $22 billion including aircraft leases, the carrier needs to increase profit to service that debt, according to The Dallas Morning News' Thursday editions."

And this was one year ago. The debt, since then, increased. Any small profit was not enough to cover pension payments, service debt, pay for services and goods, etc.

But, hey, nothing to worry! You will be okay. Management is realy nice and loves the employees.

[post="304206"][/post]​

Well those "debt loads" can be misleading.

Lets say you buy a home and borrow $200,000 for it. Your total payback over the term plus interest is around $600,000. So while you only borrowed $200,000 you could claim a debt load of $600,000. Now if your house is only worth $300,000 then you could claim that you are in the hole for $300,000, "you owe out more than you are worth".

Same with the leases, lets say you have a lease on an apartment for ten years ay $1000/month, you could claim that you owe $120,000.

So the debt really does not mean that much especially when you consider that that debt is over a long period of time. If you had to pay that $600,000 or $120,000 off every year then there would obviously be a problem but as with the company's debt, thats not the case.

AMR probably has $20 billion or so in revenue each year so the debt load, including leases is not as big of a deal as they claim especially when you consider AMR is still expanding its business as evidenced by all the new terminals they are building and new aircraft they have bought.

 

[Skymess]

Actually.......right now.........it is very close to 25B.......

"With Fort Worth, Texas-based American's total debt load exceeding $22 billion including aircraft leases, the carrier needs to increase profit to service that debt, according to The Dallas Morning News' Thursday editions."

And this was one year ago. The debt, since then, increased. Any small profit was not enough to cover pension payments, service debt, pay for services and goods, etc.

But, hey, nothing to worry! You will be okay. Management is realy nice and loves the employees.

[post="304206"][/post]​

My mistake looking at stock fact sheets and not filings.

My vote will still be no. Not that my union cares about letting my vote count or anything.

 

[FWAAA]

The total debt load is huge, no matter what number one uses, but as Mr Owens points out, the annual revenue is about equal to the total debt. The amount of debt isn't the real problem, what matters is whether the company can service the debt and stay current on repayments. So far, AMR has been able to do so. In good times, AMR pays down its debt, and in rough patches, AMR adds significant debt.

 

[Wretched Wrench]

So bitter you can hardly contain yourself.

Loser.

[post="304275"][/post]​

Very good point.

Thank you for advancing the discussion.

.