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Cash burn is not €195pw the RNS clearly states "Cash operating costs for quarter 2 of €190 million per week".
My business experience that you refer to extends enough to know that costs and revenues are different. It also means I can read accounts and these show overall cash burn was less than €50m pw for the first half of 2021 before allowing for any loan movements.
I'm pretty sure you are employed to flood the board with your negative views but please at least make sure your 'facts' are accurate.
Hexhum, you have no business experience .
Read cash burn. 195m pw and mounting.
Refinancing required, Oh dear.
All $3bn was from sales. Any credit drawdown is shown clearly and separately. Suggest you look at the accounts if you wish to check.
Dumber and dumber starting to be found out....
Oh dear
Hexam, I specifically said 'net positive income'. This does not equate to a positive cash flow. Q1/2 you say has a 'cash flow' of 3bn out of an unspecified revenue. How much of that cash flow was derived from sales, and how much was derived from the credit drawdown? Corporations are very adept at smoke and mirrors with the numbers. If BA sells a seat for £1000 and the cash is on the books the next day that is cash flow into the business. But if overheads for that day are £1001, that is a net negative income. The company then draws £1 credit from the credit card to cover the overhead. That is a total cash flow of £1001, but the income for the business is zero.
The numbers form the likes of IAG will need very careful scrutiny.
Got a flight last night after my business meetings. Pleased to report long queues at T5 arrivals. Numbers are on the up. almost 400 flights today according to ba.com. By my calculation, they should be carrying above 50000 people.Not bad!!DYOR.
"But Bull, that is also like saying sales equates to net positive income. That is not necessarily the case. That is why the market and investors can only go by the last set of published data."
Yes, and the last set of published data showed positive cash flow of around £3bn from revenue for the first half of 2021.
Big bull: GREAT POST !
But Bull, that is also like saying sales equates to net positive income. That is not necessarily the case. That is why the market and investors can only go by the last set of published data. It is a fools investment to make the kind of presumptions on here that because there are more flights, there must be more net money in the bank. As one person posted, we don't know how many bums on seat are carry over vouchers from cancelled pandemic flights. A lot of those flights might be heavily loss making at this point in time. Of course the art of speculation comes down to the sophistication of analysing 360 degrees of world events. But it isn't as simple as portrayed in films like Trading Places. It requires a significant suppression of ones own bias.
My inner bias with IAG is being risk averse and therefore being very cautious and sensitive to broker comments, especially when there is more reference to dilution latter on. I also don't like the silence from IAG. There are overtones of bad events from the past with big top heavy debt laden corporations that have lost their way in their market. IAG have had there's pulled away under their feet for a very long time.
The 360 says look out for state help, even form a Tory government. Most other airlines, even with the IAG group, are out cap in hand. But the 360 also tells me BA might be too proud and snobbish to so such a thing. Perhaps there will be some help targeted at airlines in the budget. The 360 says there should be. But the 360 also tells me that this government is completely consumed with all the 'green crap' and is highly susceptible to image with the environmentalists. [I note the Telegraph has been very brave and put up news stories showing some truths about the extent of support for all this climate change rubbish. I know I am not alone in my opinions of it, for a brief moment we are getting a peek at what other people also so think. And considering at least 15 years of intense one-sided heavy handed propaganda right across media, the result is a majority of people want to vote on the main climate change policy to reject it - very revealing!]
Hi Bull,
Agreed. I think he is referring to the RNS which says - "Cash operating costs for quarter 2 of €190 million per week".
As you say this is before revenues are included (the clue being the words 'costs').
From what I can see from the accounts for the first half of the year the operational cash outflow (including capex) was under $1.2bn euros so less than $50m euros a week. Still not great and capex unpredictable so not sure what Q3 will show but with revenues picking up the picture is nowhere near as bad as Fugazi paints it with his misleading numbers.
Fugazi is talking about gross burn (operating costs) which is as close to an irrelevant figure you can have in a company that isn't newly formed and generates revenue. It was briefly relevant during peak covid due to the lack of revenue coming in however now it's net burn that's the only thing worth paying attention to. Sadly there are people (like Fugazi) that don't know the difference between the two or the relevance of each figure, it's just copy and pasted out of the RNS.
When we see the net burn on the 5th we can gauge what the financial runway is with their current leverage. As of their last update in July they did have a further $1.755bn undrawn revolving credit facility so the question will be can they maintain a strong enough cash position to run a full operation if required next summer. Q4/Q1 have never historically been very good for airlines, the only slightly benefit is once the US opens some of the bookings that would have been made in Q3 should happen in Q4.
"Iag is burning 195m€ per week."
How do you know? It wasn't according to the latest accounts so what makes you think it is now?
Iag is burning 195m€ per week.
27.85m€ per day. Probably more so 28m to round up but probably nearer 30m+ per day.
"We are now almost into November burning through approx 28m€ per day."
And where did you pluck that number from? Another twister of facts at play.
RI not currently on the table, was said back at start if September.
"Currently" is key word.
We are now almost into November burning through approx 28m€ per day.
Has the 200p turned up yet?..or was sun zelda really meaning 20p? Sounds about right.
Red again today.
We seek it here, we seek it there.
Many delusional posters promised 200p.
Hello??