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Originally Posted by displacedinMN
Sorry. Very political. But give it a rest people. More things to worry about.
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U.S. Airlines Spent 96% of Free Cash Flow on Buybacks
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The biggest U.S. airlines spent 96% of free cash flow last decade on buying back their own shares. American Airlines Group Inc. -- which is not shown in the chart but is included in overall figures -- led the pack, with negative cumulative free cash flow during the decade while it repurchased more than $12.5 billion of its shares. United Airlines Holdings Inc. used 80% of its free cash flow on buybacks, while the S&P 500 Index as a whole allocated about 50% for the purpose. As the industry reels under the weight of the coronavirus outbreak corporate leaders are seeking federal assistance to ease the burden.
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The executives just paid it to themselves. Because they know they'll get bailed out in any downturn. It's a huge moral hazard.