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About 50 billion which is what American was asking for. Considering they have posted between $3-15 billion [0] in quarterly profits over the past 10 years, it s

About 50 billion which is what American was asking for. Considering they have posted between $3-15 billion [0] in quarterly profits over the past 10 years, it seems reasonable that they could have saved a rainy day fund _and_ bought back stocks. [0] https://www.macrotrends.net/stocks/charts/AAL/american-airlines-group/gross-margin https://www.macrotrends.net/stocks/charts/AAL/american-airli...

EpicEng 7y ago
You are completely misreading those charts. The interval is 1Y, not one quarter.
soared 7y ago
You want them to save half their money? That makes no sense
- deleted 7y ago
  [deleted]
- claudeganon 7y ago
  The current reality would require them to have those reserves as opposed to being bailed out, so by all meaningful definitions, it does, in fact, make sense.
  - smabie 7y ago
    No, I don't think it does. Just because an event of very small probability happens does not mean it is rational to waste half your cash preparing for it. What determines the right actions in regards to mitigating risk has little to do with the realized events; instead, it's better to look at the probability of said event. Not saying they shouldn't have saved some cash for a pandemic, but the fact that it's happened isn't an argument for them to have done so.
    - deleted 7y ago
      [deleted]
whatok 7y ago
That data looks wildly inaccurate and does not pass a sanity check at all. Take a look at anything from AAL's investor relations' page and it does not reconcile to anything like 3-15bn quarterly profit ever. https://americanairlines.gcs-web.com/sec-filings https://americanairlines.gcs-web.com/sec-filings Here's their latest quarterly filing: https://americanairlines.gcs-web.com/node/37821/html https://americanairlines.gcs-web.com/node/37821/html
otoburb 7y ago
To review the profits that AAL posted you should look at the "Net Income" charts[1], and not the "Gross Margin" charts that you linked to. [1] https://www.macrotrends.net/stocks/charts/AAL/american-airlines-group/net-profit-margin https://www.macrotrends.net/stocks/charts/AAL/american-airli...

EpicEng 7y ago

You are completely misreading those charts. The interval is 1Y, not one quarter.

soared 7y ago

You want them to save half their money? That makes no sense

deleted 7y ago
[deleted]
claudeganon 7y ago
The current reality would require them to have those reserves as opposed to being bailed out, so by all meaningful definitions, it does, in fact, make sense.
- smabie 7y ago
  No, I don't think it does. Just because an event of very small probability happens does not mean it is rational to waste half your cash preparing for it. What determines the right actions in regards to mitigating risk has little to do with the realized events; instead, it's better to look at the probability of said event. Not saying they shouldn't have saved some cash for a pandemic, but the fact that it's happened isn't an argument for them to have done so.
  - deleted 7y ago
    [deleted]

whatok 7y ago

That data looks wildly inaccurate and does not pass a sanity check at all. Take a look at anything from AAL's investor relations' page and it does not reconcile to anything like 3-15bn quarterly profit ever. https://americanairlines.gcs-web.com/sec-filings https://americanairlines.gcs-web.com/sec-filings Here's their latest quarterly filing: https://americanairlines.gcs-web.com/node/37821/html https://americanairlines.gcs-web.com/node/37821/html

otoburb 7y ago

To review the profits that AAL posted you should look at the "Net Income" charts[1], and not the "Gross Margin" charts that you linked to. [1] https://www.macrotrends.net/stocks/charts/AAL/american-airlines-group/net-profit-margin https://www.macrotrends.net/stocks/charts/AAL/american-airli...