http://seekingalpha.com/article/3784726-why-investors-should-avoid-american-airlines?app=1&auth_param=61qop%3A1b8a6vl%3A352b015c89b18b3fa956ea3dec1f3f64
Why Investors Should Avoid American Airlines
American Airlines ended the last quarter with a debt of over $20 billion as opposed to total cash of $8.9 billion. Although American is reporting record profits, the company's management has taken no step to reduce its large debt. Instead, the company has used the money to buy back shares, revamp its fleet, and compete against carriers like Spirit on price.
The carrier has already spent billions on buying new planes, share repurchases, and competing against Spirit. However, it is still not too late for the company to rectify its mistake. Given the volatility in oil prices, the company should start paying off its debt sooner rather than later.
Conclusion ???????Akshansh Gandhi
An engineering student who has an interest in stock market.
Why Investors Should Avoid American Airlines
American Airlines ended the last quarter with a debt of over $20 billion as opposed to total cash of $8.9 billion. Although American is reporting record profits, the company's management has taken no step to reduce its large debt. Instead, the company has used the money to buy back shares, revamp its fleet, and compete against carriers like Spirit on price.
The carrier has already spent billions on buying new planes, share repurchases, and competing against Spirit. However, it is still not too late for the company to rectify its mistake. Given the volatility in oil prices, the company should start paying off its debt sooner rather than later.
Conclusion ???????Akshansh Gandhi
An engineering student who has an interest in stock market.
Bankruptcy (at least for most airlines) is to eliminate your benefits and trash your contract. The only debt the company wanted to reduce or restructure (actually, think eliminate) was our pensions, and our retiree health benefits.
