With $34 Billion in outstanding debt, it is only a matter of time before American Airlines (ticker: AAL), comes calling hat in hand for a bailout. AAL will require financial aid (a bailout or a very large equity offering), before 2026 debt maturities occur.

• The 2020-2021 COVID bailouts were not the answer to the bloated airline industry’s survival. The airline industry is more bloated than Monty Python’s Mr. Creosote.

• It appears that AAL will require financial assistance in order to meet its 2026 debt maturities. We say this based upon the below debt schedule. It is likely that a Government bailout is coming, or a significantly dilutive equity event, or both as it relates to AAL.

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