jeffwelch2426

Last year the company lost $500M on $1.5B in sales. It owes jet card holders another $1B. Even a kid with a lemonade stand knows that you can’t stay in business too long if you sell 3 cups of lemonade and get enough nickels and dimes to cover the cost of 2 cups.

Delta Airlines knows a lot about about lemonade sales. Delta owns about 30% of the UP stock……certainly Delta hasn’t been a spectator in the UP losses since 2020. So what is really going on? Last month when UP officials told us “bankruptcy was not an option” Delta was assuring UP jet card holders that they would get first class seats on the mothership in exchange for their jet card purchases. As a stockholder of UP can Delta Airlines assume random debts of UP or did they just volunteer to take on all of the debt at UP?

The next few weeks should be interesting at the UP lemonade stand.

marc2

The academic definition of an entrepreneur is “a person attempting to create a need where there is none”. UP has this problem. They believe that flying football stars to contract negotiations creates unlimited revenue opportunities. It doesn’t. However, there is a real, untapped market for the services they provide. If they are smart enough to reach out to me I’ll let you know how it goes. OTW, I’m happy enough flying my own plane(s).

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flyingfireman

Investing in aviation is the very definition of the triumph of hope over experience.

Is there any other line of business that has destroyed more investor wealth in the last 100 years ?

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jbrewster7453

Stay by your phone, I’m sure they’ll be calling you any minute now.

Raf

Maybe: The U.S. Financial Sector, 2007-2009, sloppy lending practices. It led to a global economic downturn and affected the confidence of investors around the world.