American Airlines (AAL) shows signs of bankruptcy in the upcoming years
- American Airlines entered 2020 with the highest debt load and lowest profit margin of any major U.S. airline.
- American has borrowed (or plans to borrow) $10.2 billion and will receive $4.1 billion in non-repayable grants from the government, and will likely burn through the vast majority of this cash during 2020.
- The COVID-19 pandemic has caused the company to go even deeper into debt, further anticipating that the company will lose money and burn cash in 2021.
- American Airlines has significant risk to go bankrupt due to massive liabilities and weak prospects for profitability over the next few years
- The company needs a lot of things to go their way in the upcoming years to have a good chance of surviving.
About American Airlines
American Airlines Group, Inc. is a holding company, which engages in the operation of a network carrier through its principal wholly-owned mainline operating subsidiary, American. The firm offers air transportation for passengers and cargo. It operates through the following geographical segments: Department of Transportation Domestic; Department of Transportation Latin America; Department of Transportation Atlantic; and Department of Transportation Pacific. The company was founded on December 9, 2013 and is headquartered in Fort Worth, TX.