U.S. Major Airlines — Earnings Analysis for 2020-Q2

Income Statement

Income Statement 2020-Q2 (Reformatted)
  • UAL has the highest percentage of revenue that comes from freight at 27.25% (vs 4–8% for the other three)
  • Almost half of DAL’s revenue comes from “Others”, like from its stake in LATAM (20%) and Aeromexico (49%)
  • The biggest expense by far is salaries, wages, and benefits. Right now the revenue does not even cover those costs. The companies have warned of major layoffs after the CARES act stimulus expires but seeing the actual cost breakdown really brings it home how much they will have to cut staff in order to get back to profitability.

Balance Sheet and Market Capitalization

Balance Sheet for 2020-Q2 (Reformatted)

Changes in the Landscape

Source: WSJ

Concluding Thoughts

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