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Old Dec 12, 2002 | 9:27 am
  #12  
FWAAA
FlyerTalk Evangelist
 
Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
Posts: 31,789
Welcome to FT.

From what I have read, the cash burn is much higher in December than other months because of these factors, most of which make sense:

Not many high-fare business travelers buy tickets (last minute purchases) between turkey day and Jan 1;

Most tickets for December holiday travel were paid for weeks/months ago (advance purchase fares);

Many vendors are now requiring Cash up front rather than extending trade credit;

and some others.

The factors listed above look like one-time hits to cash and cash burn should lessen in January (unless BK discourages travelers from buying tickets).
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