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Thread: The good times are fading fast for AA

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    Registered User NoOtPilot's Avatar
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    The good times are fading fast for AA


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    While American Airlines did see some upside in recent weeks, as the global economy reopened, the good times are fading fast. For one, the company is scrambling to raise cash again.
    CEO Doug Parker quelled bankruptcy rumors, noting, “Bankruptcy is failure. We’re not going to do that. I don’t think you’ll see any airline go by the wayside as a result of this crisis.”

    Unfortunately, a second round of the coronavirus could force it to file anyway. AAL has a shaky liquidity position, says Daren Fonda, a contributor at Barrons.

    “The airline is adding back more capacity than its peers, gambling on demand rebounding sharply. That could pay off if travel recovers through the summer and into the fall, enabling American to capture more share than United and Delta. If demand doesn’t materialize, because of a second virus wave, however, it will pressure American’s already shaky liquidity position.”

    Doug Parker’s Gamble didn’t work...
    3,000-4,000 pilots will be furloughed.
    Write that number down.
    Maybe more later.
    https://seekingalpha.com/amp/news/35...job-reductions
    “I always tell the truth. Even when I lie.”

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    Quote Originally Posted by NoOtPilot View Post
    While American Airlines did see some upside in recent weeks, as the global economy reopened, the good times are fading fast. For one, the company is scrambling to raise cash again.
    CEO Doug Parker quelled bankruptcy rumors, noting, “Bankruptcy is failure. We’re not going to do that. I don’t think you’ll see any airline go by the wayside as a result of this crisis.”

    Unfortunately, a second round of the coronavirus could force it to file anyway. AAL has a shaky liquidity position, says Daren Fonda, a contributor at Barrons.

    “The airline is adding back more capacity than its peers, gambling on demand rebounding sharply. That could pay off if travel recovers through the summer and into the fall, enabling American to capture more share than United and Delta. If demand doesn’t materialize, because of a second virus wave, however, it will pressure American’s already shaky liquidity position.”

    Doug Parker’s Gamble didn’t work...
    3,000-4,000 pilots will be furloughed.
    Write that number down.
    Maybe more later.
    https://seekingalpha.com/amp/news/35...job-reductions
    His record of overly optimistic prognostications has already been well established, so anything he says should be taken with a cinderblock of salt.

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