RE:RE:RE:RE:RE:RE:Returns changes lyrics to his favorite song...1b1 The glass is not always half full! While I liked the quarter generally there were things that were not all the impressive and still worrisome.
1. You seem to make alot about the cash flow but while they had reasonable cash flow number their net cash flow was actually lower than the 3rd quarter last year. Further the free cash flow number was a negative again worse than the 3rd quarter last year.
2.. Impressive operating margin of over 12% which is fantastic for AC who usually operates much lower the US airlines. That said, if you look at their guidance going forward they are using 8-11%!
3. Net Debt has risen about 1 billion dollars in the last 3 quarters
4. Still lost 1/2 billion dollars for the quarter!
Generally a positive quarter but even with a dominant position they do not seem to have the skill necessary to run profitably in a tough environment.