TeamAmerica From United States of America, joined Sep 2006, 1761 posts, RR: 23
Reply 5, posted (9 years 3 months 2 weeks 5 days 15 hours ago) and read 3669 times:
Kudos to AA for avoiding bankruptcy and maintaining pensions and benefits for their employees. That said...
Quoting AA787823 (Reply 3): A $231m annual profit is only about a 3% pre tax margin, which is not sustainable for long term growth and prosperity.
Absolutely correct. 2006 was about as good as we can expect, and yet the profits are pitiful. The only real hope is if fuel prices come down and stay down - and I'm a bear on that topic. I also fear the unions taking these meager profits and arguing as if there is a bucket of money to draw from.
Richierich From United States of America, joined Nov 2000, 4531 posts, RR: 6
Reply 11, posted (9 years 3 months 2 weeks 5 days 13 hours ago) and read 3443 times:
Quoting AA787823 (Reply 3): Gongrats to all AA-ers! great work!. But still a LONG way to go. A $231m annual profit is only about a 3% pre tax margin, which is not sustainable for long term growth and prosperity
I concur (except I spell congrats with a "C"!)
This is only one step in the full recovery process and while it is encouraging, you also have to keep it in proportion. Still, it beats a loss any day!
ElmoTheHobo From United States of America, joined Aug 2006, 1565 posts, RR: 1
Reply 12, posted (9 years 3 months 2 weeks 5 days 6 hours ago) and read 3239 times:
This is great but they still need to get their debt under control. They paid 250 million in interest in the fourth quarter alone, meaning they are spending as much in three months as they make in an entire year on interest.
But absolutely great, their great performance is helping me get through college!