Boeing CEO Dave Calhoun said in an NBC interview on Tuesday
that a U.S. airline bankruptcy is likely in 2020. It is a curious comment coming from an executive whose company sells to airlines, but Covid-19 has hit the industry particularly hard.
Looking ahead, Calhoun’s comment raises two questions for investors: which airline and is that bad for Boeing?
Southwest Airlines (LUV) and Delta Air Lines (DAL), which have the best balance sheets in the industry appear to be in the best position to weather the downturn. Investors appear to be most nervous about American’s ability to repay. Thus, its bonds are the costliest to insure.
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