May 5, 2012 Q1 losses across the board
United airlines, Delta Airlines, U.S. Airways and American Airlines all have one thing in common, losses across the board. For United and Delta this is not really a problem. For U.S. it impacts their ability to sell AA’s creditor committee that they are able to assume control of AA and turn it to a profit making institution. If US’ loss is bad then AA’s is worse. Most companies are able to turn a profit in bankruptcy because their creditors can not collect on the debt. AA even bankruptcy can not turn a profit. Their creditors will see this. For those creditors on the fence about supporting US Airway’s bid this may push them over to US’ side.