If anyone is still interested to invest in Airline Industry, you need to have the comfort that this Airline company will not go BK.

Just compare our local Airlines to US airlines - what's the difference?

Big US airlines are getting bailouts, small airlines have a much better balance sheet and cost structure as compared to AA.

Just take a look at the maintenance cost/revenue ratio between AA and say, Spirit airlines, fees per revenue/passenger, current ratio, debt/equity ratio, margins etc. AA falls short in everything - and throw in the mix that they are lease likely to get bailouts, with an extremely bad reputation during this period.

Then there's a need to reevaluate the consumer's spending power. US citizens are getting stimulus checks every other month, what did Malaysians get?

Now once you compare all these.. what if I tell you the price to value that you need to pay to acquire shares of AA vs US airlines is around the same? Would you rather put your money there or in AA ? (If investors insist on buying into travel industry to get the huge returns when things go back to normal). Not recommending anything, just a thought to ponder and make sure everyone does their own studies before investing just because the price is "cheap".
When investing, always look at the company's competitors, whether in Asia or Western countries. You might just find that your money could get you better value elsewhere. I just hope all who are interested in investing in an airline company do exactly that.

Thanks for sharing this article! Good read, and certainly useful for most new investors.

“In good times, I was in a good mood and smiled at everyone at work. When the market went down and I lost money, everyone in the office was like my enemy. It stressed me out and I did not like it.”

I'm sure most who started have this feeling - including me in the past .

Also, everytime when emotions start to take control - I tend to re-read "The Intelligent Investor". Think it's a good book for starters.
Not sure on your question.. but regarding the savings.. they did have cost cutting measures but not sure how long it can last them. They spent so much paying 3.4bil of dividends before COVID, and spend on "growth projects" such as BigPay/Teleport/Santan and now their current ratio is only 0.61. Currently their cash flow for year ending dec 2019 from operating is around 3bil, now imagine if this is negative for the year 2020.

These are their current liabilities - if they can differ this then yes - they can survive.. barely, and use up all their current assets to maintain the day to day expenses that cannot be delayed such as staff salary etc.

Trade and other payables
Aircraft maintenance provisions/ payables
Sales in advance (this is where they are trying not to refund your tickets )
Amounts due to associates
Amounts due to related parties
Amounts due to joint ventures
Borrowings
Lease liabilities
Derivative financial instruments
Provision of taxation
Liabilities directly associated with assets held for sale

Just finished watching Berkshire's annual shareholder meeting. They sold 100% of their holdings in the 4 major airlines which they had stakes in.

anyone play this airlines stock now is gambling not investing.