UAL/CAL Revisited.

[Maark767]

cleaned up? Ok, here it is

American Airlines' parent AMR (AMR Quote - Cramer on AMR - Stock Picks) appears to be in decent shape on the surface, with nearly $6 billion in liquidity. Trouble is, that carrier has been deferring badly needed investments for quite some time and would need to burn through much of that liquidity to upgrade its aging and inefficient fleet. Until that happens, AMR's fuel-thirsty planes will likely keep the carrier from operating flights profitably, even as others might slip into the black as oil inches toward $100. Conversely, a big spike in oil would dole out an especially painful hit to AMR.

On the other end of the spectrum, UAL (UAUA Quote - Cramer on UAUA - Stock Picks), parent of United Airlines, and JetBlue (JBLU Quote - Cramer on JBLU - Stock Picks) appear to be in fairly strong financial shape. Both carriers are generating positive operating cash flow and have made sure to keep their balance sheets from becoming too debt-laden.

In fact, UAL gains very high marks for trying to squeeze out every cost in its system and constantly tweaking its route network.


*****

That was fun. Still up on that high horse?

Wow ... we better close the doors now !!! Dont believe everything you read...
Thats just one persons two cents .....
Would you buy UA stock??? Really....

 

[jimntx]

Others (buyers on Wall Street) also seem to have a different opinion from Mr. Cramer. This morning Dow Jones is down over 200 points within 100 points of slipping below 10,000. Some airline stocks...

AMR $9.01 down 0.24.
DAL $7.74 down 0.12.
NWA $9.26 down 0.19.
LCC $6.33 down 0.17.
UAUA $7.79 down 0.32.

 

[UAL_TECH]

Others (buyers on Wall Street) also seem to have a different opinion from Mr. Cramer. This morning Dow Jones is down over 200 points within 100 points of slipping below 10,000. Some airline stocks...

AMR $9.01 down 0.24.
DAL $7.74 down 0.12.
NWA $9.26 down 0.19.
LCC $6.33 down 0.17.
UAUA $7.79 down 0.32.

Correction:
This morning Dow Jones is down over 480 points within 100 points of slipping below 10,000. Some airline stocks...

CAL 13.80 -1.39 -9.15%
DAL 7.28 -0.58 -7.38%
LCC 5.77 -0.72 -11.09%
UAUA 7.06 -1.05 -12.95%
NWA 8.63 -0.82 -8.68%
AMR 8.23 -1.01 -10.93%

 

[blue collar]

no new 737s on the way right now as boeing is on strike 30 days and counting. hope the best for all of them.

 

[Maark767]

no new 737s on the way right now as boeing is on strike 30 days and counting. hope the best for all of them.

I wish them luck too..... we all need a little luck these days !!!

 

[Hi-C-Camp]

"Trouble is, that carrier has been deferring badly needed investments for quite some time and would need to burn through much of that liquidity to upgrade its aging and inefficient fleet."

This same observation could also be made regarding UA.

Not even close fresshell - UAL is getting rid of all its 737s - ALL - and the only "old" fuel inefficient planes that UAL has is 747 fleet and maybe some 767s.. even then, they pretty much carry their own weight as they are on higher yield markets. AMR has 360 S80s alone, Nothing else really needs to be said... It speaks for itself...

 

[BoeingBoy]

AMR has 360 S80s alone, Nothing else really needs to be said... It speaks for itself...

Out of date info.....at the end of the second quarter AA was down to 298 operating MD-80's with continued replacement/retirement to occur.

As for the cost of replacing the remaining MD-80's, it would indeed take all of AA's cash to outright buy replacement aircraft. However, by using either sale/leasebacks or mortgages (EETC's) AA could replace it's entire fleet of aircraft if it wanted and have money left over.

Jim

 

[jimntx]

With more to be grounded at the end of this month. Just last week, they painted parking stripes for the 737 at all AA gates at STL. Yay!