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Airline Money

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Crash Pad

Well-known member
Joined
Jun 10, 2005
Posts
1,720
I was wondering if any of the flying money gods on this board could post how much money each major has in cash?

I think we are just sitting around waiting for a couple to bleed out... I was just curious who is in the best shape.
 
I was wondering if any of the flying money gods on this board could post how much money each major has in cash?

I think we are just sitting around waiting for a couple to bleed out... I was just curious who is in the best shape.

No figures in front of me on Sunday afternoon, but "financially speaking" SWA is always in top shape, and CAL is actually pretty good also.
 
NWA 3.09 B
AMR 4.54 B
DAL 2.79 B
UAL 3.55 B
CAL 2.8 B
USAIR 2.17 B
SWA 2.78 B

I think these numbers are accurate, but someone may have a better understanding of how much cash the airlines are bleeding through each day.
 
NWA 3.09 B
AMR 4.54 B
DAL 2.79 B
UAL 3.55 B
CAL 2.8 B
USAIR 2.17 B
SWA 2.78 B

I think these numbers are accurate, but someone may have a better understanding of how much cash the airlines are bleeding through each day.

also note that just "having cash" is not the entire story, it is liabilities/bills, and credit ratings (ability to borrow), etc etc.

SWA cash level coupled with operating costs are different than AMR who may have more cash but obviously has hugely different operating costs.
 
Cash...

Also, the amount of cash in reserve affects all sorts of things like:
-debt rating
-holdback for credit card processors
-interest on certain debts

These figures may seem like a lot, but they are not in today's world. The lower the cash reserves get, the more bad stuff starts happening.

About the only thing that will keep any of these guys out of bankruptcy for long is lower fuel costs. The industry ha proven many times over that it is unwilling to raise prices enough to cover the costs of the service it provides.
 
Also, the amount of cash in reserve affects all sorts of things like:
-debt rating
-holdback for credit card processors
-interest on certain debts

These figures may seem like a lot, but they are not in today's world. The lower the cash reserves get, the more bad stuff starts happening.

About the only thing that will keep any of these guys out of bankruptcy for long is lower fuel costs. The industry ha proven many times over that it is unwilling to raise prices enough to cover the costs of the service it provides.

All true.

Higher fuel prices are hurting, but I think the "liquidity" question is the one that will come back to haunt this time around.

Airlines don't leave that much "unrestricted" cash lying around.

They depend on the credit markets to invest that money in short-term notes and commercial paper, and the credit markets in this counry are sicker than the airlines.
 

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