B6's rate of cash burn relative to revenue is higher than any of the other US airlines at the moment, and growing fast.
That's not the case for Q3. Since we don't actually have numbers for Q4, maybe you shouldn't be making this kind of broad statement? Case in point, their guidance for Q3 was 7 to 9 million and it ended up being $6.1 million.
In an SEC filing, B6 stated they expected cash burn in Q4 to be 4 to 6 mill. They updated that on 11/30 to a number closer to 8 mill. Ouch,.
they put 6 to 8 because cancellation picked up in November, but Robin Hayes have been very vocal last week about improved bookings and optimism for Jan/Feb bookings. Much of this is due to improved forward booking with vaccine news. Their last investor update for Q3 said expected cash burn was in the lower end of 7 to 9 million and it ended up being 6.1 million. Point is you don't know what it is until they actually release the numbers.
DL turned NYC profitable a few years ago, but the investment there began in earnest in 2007 once it exited bankruptcy. I'm allowed to provide the context for AA's situation in NYC just as much as you are to press your points, about B6, however inaccurate or over-inflated they may be. COVID19 is a major re-set in the entire aviation industry, not just NY. At B6's rate of cash burn relative to what it is spending, it is burning its way into Chapter 11 at a very fast clip. One of the US3 will probably end up in a similar position. Now, am bored with you. Back to sensible, intelligent exchanges on this forum.
DL's NYC operation may only have turned profitable in mid 2010s, but it got quite profitable by 2019 thanks to AA's cuts. It was certainly on the road to NYC dominance. A terrible scenario for JetBlue. But it was a pretty bad scenario for AA also. COVID provided a huge reset in NY/NJ. So the two airlines got together. If you really care about AA, maybe you should appreciate how it will help AA keep ff in NY/NJ area and win over ff in other parts of country.
B6 had a better cash position than any carrier outside of WN pre-COVID. They had very little debt. Even now, their debt - cash is only about $1.7 billion. They have only taken out a small fraction of the loans available to them under CARES act 1. And they have chosen to keep more employees around to capture on rebound when leisure picks up. Why does it matter to you how they makes network decisions?
Just wait a couple of more months and let's see what happens here. Maybe you will be right and this deal goes down in flames. Or maybe you will be wrong and things get implemented as they discussed. Or maybe it gets expanded further.
The big difference is that AA/AS had an existing partnership with mileage earning going back many years. AA/B6 deal came together very quickly. The details of the ff benefits and code sharing details were not agreed to until a month and half ago. And the deal didn't get approved by DOT until a month ago.
AA and B6 had a FFP corporation in earning and redemption as well as codeshare back in the days when B6 was still growing in NYC. Can't remember when exactly, but I knew it was before AA/US merger and possible before 2010.
sure, but that was before the US merger and things have changed a lot since. There is certainly a lot more to be negotiated there. AS also does a lot more mileage earning/redemption with other partners and joined OW. None of which applies to B6, which only have a few such partners.
Also, JetBlue has just announced major change to mosaic program. It needs to make further changes to align itself better with AA's ff program in order to determine upgrade priorities and such. Mosaic is simply a much less developed program than AS's ff program. It makes a lot of sense for things to take a while to get implemented.