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.