Originally Posted by
FrequentTPAC
A correction - it looks as if my typos (Y instead of J and Y/F instead of J/F) induced a firestorm. Wow! I thought that these would be easily identified from the context - I missed the typos myself, repeatedly.
So yes, we are talking on business flat-bed seat on TPAC - coach has no role in profitability. Otherwise, all my comments stand - UAL is toast - bet on DAL to rebound much, much faster.
To clarify, when you say "toast", do you mean a Chapter 11? I believe it's within the realm of possibility, but still unlikely at this point, for UAL. Taking into account the payroll grant, government-backed lending, cash on hand and the this week's equity offering, the company has access to around $14b in liquidity right now, with more levers to pull, and an undrawn $2b credit facility. Cash burn, while currently unsustainable, is declining, and should continue to decline. United isn't in the same position as Delta, or even Southwest, but it has the cash to weather the storm, assuming the worst shock (near-complete emergent shutdown) is behind us.
If you mean "toast", as in UAL will actually be forced to
cease operations in the intermediate term, that's just not credible.