4 ms·
American Airlines: Soaring debt, fleeing investors, and a 90% stock drop
- time4tea 3y agoSpent $12b in stock buybacks, now worth $7b, and loaded with debt. When will companies learn that stock buybacks are a terrible way to spend their money, and in AA case, their debt... Their debt would be at 50% of its current without that buyback, and its entirely possible the stock price would be unchanged. Buybacks basically never have the stated outcome of boosting the share price, they just use up all the money, so now your company can't spend it in making itself better.
- wenebego 3y agoMaybe their c suite was able to cash in on the temporary boost
- naveen99 3y agoJust think of it as the banks buying the shares with limited upside.
- toomuchtodo 3y agoBuybacks should be illegal, as they once were.
- pg_1234 3y agohttps://archive.ph/eJ6YT https://archive.ph/eJ6YT
- panja 3y agoVery surprising to me, I just had 4 flights on American this past week and every single one was full. Anecdotal of course.
- jwnin 3y agoThey're full because they've reduced the amount of available flights.