AA posts big (1.45B) loss

[rtmcfi]

http://hosted.ap.org/dynamic/stories/E/EARNS_AMR?SITE=MTBIL&SECTION=TOP_STORIES&TEMPLATE=DEFAULT

 

[AAflyer]

284 million loss for the quarter. (included in that loss was the MD80 debacle from last spring).

Increased cash position by .5 billion for total cash of 5.5 Billion.


Please don't bite too hard that on that 1 Billion WRITE DOWN, management loves when pilots do not understand basic accounting principals.

AAflyer

P.S. The company has been cash flow positive all year, and continues to pay down debt.

 

[~~~^~~~]

AA Flyer is correct.

AA's numbers were actually pretty good.

 

[Colonel Savage]

AA Flyer is correct.

AA's numbers were actually pretty good.

OK, then here's a question from a dumb pilot...

Is the 284 mil loss what the operating loss was? If so, how is that cash flow positive if it reflects a 3.1 mil loss rate per day?

 

[maxblast72]

In general, I have heard that airlines cash positions are highest during summer and lowest during winter. It was explained to me when I asked our CEO (in May) at a town hall meeting if we were going have credit card holdback issues in the near term. His response was the most critical time period would be Nov-Dec since that is when our cash position is the lowest (possibly triggering credit card holdback issues).

Does tickets bought in June for travel in July and beyond count in the cash position for an airline at the end of the second quarter? If so, that would explain how the cash position increased during 2nd quarter as alot of tickets being bought for use during rest of the busy summer travel season.

 

[meanstreak]

Just saw on flightglobal.com that all 34 Airbus 300-600's will be parked in 2009 instead of 2012.

 

[AAflyer]

OK, then here's a question from a dumb pilot...

Is the 284 mil loss what the operating loss was? If so, how is that cash flow positive if it reflects a 3.1 mil loss rate per day?

What loss rate..... ie the misunderstanding of the burn rate.

Is the 3.1 million a day CASH BURN, or an ACCOUNTING BURN... It is an ACCOUNTING BURN which is we we gained total cash for the quarter and continued to pay debt.

It is a shell game. Analysts like Jamie Baker for JP Morgan despise pilots and will usually mislead the masses with "improper" terms ie substituting cash, for accounting.

We have been cash positive this past year and HAVE not BURNED into the cash reserve.

When we start a CASH BURN it will be time to start making alternate plans.

AA also sold AMR beacon services for over .5 billion which will be on the books as of next quarter.

Yes, oil is killing us, yes economy is in the dumps, however I am in no mode for give-backs or concessions as long as the numbers above are posted.

AAflyer