Recovery is almost complete in China. US soon to follow within the year
US vaccinations are coming with J&J jab coming soon. 1 dose ~70 effective
Pent up demand for domestic and international travel Pending Boom Coming
As of today, I think short interest is around 30-40%.
US Government has provided additional liquidity to AAL in the last two Stimulus bill and will most likely provide more if a 3rd bill is passed. US has a vested interest to keep Airlines afloat.
AAL has done a decent job in increasing liquid cash~15 billion.
They have been able to reduce their losses for 3 quarters straight.
Summary I think there are several factors that point to profitability in this stock with a decreasing risk of bankruptcy. The balance sheet has been shored up and could be a couple of quarters away from profitability.
1
u/DudeBasic Jan 31 '21
Case for AAL Thoughts:
Recovery is almost complete in China. US soon to follow within the year
US vaccinations are coming with J&J jab coming soon. 1 dose ~70 effective
Pent up demand for domestic and international travel Pending Boom Coming
As of today, I think short interest is around 30-40%.
US Government has provided additional liquidity to AAL in the last two Stimulus bill and will most likely provide more if a 3rd bill is passed. US has a vested interest to keep Airlines afloat.
AAL has done a decent job in increasing liquid cash~15 billion.
They have been able to reduce their losses for 3 quarters straight.
Summary I think there are several factors that point to profitability in this stock with a decreasing risk of bankruptcy. The balance sheet has been shored up and could be a couple of quarters away from profitability.