Global Airlines
Industry - Raymond and Leo
British Airways - Billy
Delta Airlines - Trevor
Singapore Airlines - Herman
Presentation Agenda
• Airline Industry Overview
• State of the Industry
• Traffic and Economics
• Regional Summaries
• Analysis of
British Airways
Delta Airlines
Singapore Airlines
Airline Industry Overview
• Economy grows, travel grows
• Current short-term cycle is severe
RPKs negative growth
SARS virus
• Long-term forecast remains healthy
Economies will grow 3.2% annually
Air travel will be 5.1%
• Industry deregulation stimulates air travel
New routes and more frequencies
• Economic and traffic growth rates vary by region
State of Industry
Air Traffic Cycles
Long-term Trend
Air Travel Cycles
• Annual negative world traffic growth
– In 1991 and in 2001-2002
Air Travel Cycles Cont’…
• Long-term trends remain healthy
• Drivers for long-term air travel growth
Economic growth
Globalization of trade
Airline network service improvements
Declining fares
Deregulation and liberalization
Air Travel Cycles Cont’…
• In short term, air travel is more volatile
Consumer confidence
Business profits
Depressed income
High-technology stock market “bubble”
September 11
Outbreak of SARS
Long-term Trend
Long-term Trend Cont’…
• Keys:
Forecast shows 5% fewer world RPKs
(Revenue per kilos) at the end of 20 years
than without this unusual short-term cycle
Yet, air travel growth will continue the pace at
5.1% annually
Traffic and Economics
Economic and Traffic Forecast
• World GDP is forecast to grow by 3.2%
over the next 20 years
• Mature economies, GDP growth will
average between 2~3%
• Emerging economies, GDP growth may
average over 4%
Forecast Cont’…
Regional Summaries
European Airline Industry
Companies
• Company in focus: British Airways
– Others:
• Air France
• KLM
• Lufthansa
• Virgin Atlantic
Source: Air Transport Association
Industry Highlights – 2002/03
• Passengers
– 13.8 millions reduction
• Breakeven Load Factor
– 69.4%; compared to a 69.2% load factor
• Profit
– USD$0.87 billions loss
Factors influencing the industry
• SARS phenomenon
• Iraqi War
• Post 9/11 recovery phrase
• External Shocks
– Currency Appreciation
– Security & Insurance
Source: Association of European Airlines
Competition
• External
– The US Airlines in the North Atlantic market
• Internal
– Substantially increased of no-frills competition
in Europe
• Ryanair, Easyjet, Go, bmibaby, Virgin Exp, etc
• Consolidation & Alliances
– Star, Oneworld, KLM/Northwest, SkyTeam
Regulatory Environment
• Deregulation is a global trend
– First stage of liberalization in European
Airlines
• European governments wants:
– Low fares
Consequence
– Increased demand
• Increased demand for infrastructure growth
Trends
• Slow recovery
• Mature economies with low growth rates
• Continuation of liberalization
• Growing international networks
• Rise of “No-Frills” carriers
Source: Association of European Airlines
N. American Airline Industry
Companies
• Company in focus: Delta Airlines
– Others:
• United Airlines
• American Airlines
• Southwest Airlines
• Northwest Airlines
Industry Highlights – 2002/03
• Passengers
– 17.4 millions reduction
• Breakeven Load Factor
– Increased from 76.7% to 81.4%; compared to
72.1% load factor
• Profits (Loss)
– USD$12.1 billions loss
Factors influencing the industry
• Post 9/11 recovery/syndrome
– Customer avoidance of air travel
• Government tax & Security policies
• Insurance
• Escalating fuel prices
• Economic downturn
• Iraq War and SARS phenomenon
Source: Air Transport Association
Competition
• 85% of the passengers have more than 2
or more carriers
• Growth of hub-and-spoke
– Increased competition in small markets
• Alliances
• Star
• SkyTeam
• OneWorld
Regulatory Environment
• Deregulations
– Mature liberalization
• Post 9/11 Financial Effect
– Increase financial burden for airlines
– Additional insurance costs
• Increased tax burden
Source: Air Transport Association
Source: Air Transport Association
Trends
• Slowly recovering
• Mature economies with low growth rates
• Low fares
• Cost-cutting strategies
• Efficient airline networks
Asian Airline Industry
Northeast Asia
• Annual GDP growth is forecast at 2.1%
• This low rate is driven by Japan
• Korea will grow at a faster rate than Japan
• Air travel will grow above world average
Globalization and liberalization
Fully deregulation
Air travel growth at 6.2%
Northeast Asia Cont’…
• Fragmentation will
continue
– North America will
remain popular
– Europe continues to
grow
Southeast Asia
• A mixture of countries at varying stages of
economic growth
• GDP is forecast to grow at 4.7% annually
over the next 20 years
• The region is diverse
Economic and cultural interchange
Southeast Asia Cont’…
• Southeast Asia has
strong cultural ties with
both Europe and North
America
VRF (visiting friends and
relatives)
• Region with its natural
resources and cultural
attractions is forecast to
develop as a leisure
destination for Asia
Southwest Asia
• GDP outlook is forecast to grow at 5.5%
• Subject to:
Privatization
Globalization
Infrastructure
Tourism development
• Overall traffic growth of the region will
average 7.0%
Southwest Asia Cont’…
• Traffic within Southwest
•
Asia will average 8.7%,
one of the world’s
highest
Encompasses several
air travel markets
Middle class travels for
business
Pilgrimage
Tourists and VFR
China
• GDP forecast of 5.9% per year is the
highest in the world
• China is the fastest growing region
Air travel expands at 7.6%
• World Trade Organization
Globalization is a major driver
China Cont’…
• Airline industry is
modernizing
Airline consolidation
Infrastructure investment
Network and fleet
rationalization
Participation in major
alliances
Airlines Analysis
Stock Price: £ 224
£1=1.68 US Dollar
(Nov 7, 2003)
British Airways
Background
• British Airways is a public limited company
• BA, is the leading airline in Europe
• One of the biggest in the world
• It manages almost 330 planes, 550 destinations in 133
•
•
countries
BA has holdings in other airlines, such as the Australian,
Quantas, and the Spanish Iberia.
Major destinations are Europe, America, Africa, Australia,
South Pacific and Middle East
British Airways
• Strategies
– Low-cost strategy
• £650 m in cost saving by March 2003
• Reduced manpower by 4446 people
– Corporate Mission
• Low fare in UK domestic market
• Greater use of e-technology for customers, staff
and agents
– Focus on business class passengers
British Airways
• Main Competitors
– Europe Market
• Lufthansa and Air France are dominating the
market
– North America Market
• United Airlines & Delta are dominating the market
British Airways
• Alliance
– Oneworld alliance
• 8 airline members:
– British Airways, Aer Lignus, American Airlines,
Cathay Pacific, Finnair, lberia, LanChile and
Qantas.
SWOT Analysis
• Strengths
– Strong brand name
– Good reputation
– Reduce net debt
• Weaknesses
–
–
–
–
–
–
Reduce boeing aircrafts
Routes reduced
Reduce service and flights
Increase insurance cost
Increase security cost
Downturn in passenger
demand
– cutting flights to the US
and the Middle East
SWOT Analysis
• Opportunities
– ‘Open skies’ between
US and UK
– Predict growth in
Europe market
• Threats
– Economic weakness
– SARS
– Middle East
developments
– Price competition with
other airlines in
Europe
Financial Ratio
ROA
ROI
ROE
P/E
P to BV
2003
0.0253
0.00708
0.0317
15.45
0.0455
2002
0.01
-0.0128
-0.0643
-17.35
0.104
Financial Data
• Total Revenue=$12,147 i by 7.8%
• Total Expense=$7616 i by 10.21
• Net Income=$72 h by 2.39
• Net asset=$3,592 h by 3%
• Earnings per share=6.7
• Operating margin=3.8% h by 5.1 pts
• Net debt/total capital ratio=60.7% i by
5.3 pts
Operating Data
•
•
•
•
•
•
•
•
RPK= £100,112 h by 5.8%
ASK= £139,132 i by 0.9%
Passenger Load Factor=71.9 h by 1.5%
RTK= £14,213 i by 2.9%
ATK= £21,328 i by 6.7%
Overall Load Factor=66.6 h by 4%
Passengers Carried(000)=38,019 i by 5%
Tonnes of Cargo Carried(000)=764 h by 1.2%
Stock Valuation
1 Year Price Chat
1year price range: £85.00 - £215.75
Today’s stock price: £224
Stock Valuation
Last Trade
Change
7 Nov · 224.00 p +10.75 (+5.04%)
Day's Range
Bid
Ask
214.00 - 225.50 221 224.25
52-wk Range EPS (ttm) P/E
85.00 - 215.75
6.7
31.83
Prev Cls Volume Div Date
213.25 26,714,080 N/A
Open Avg Vol Ex-Div
214 14,566,425 N/A
Mkt Cap Div/Shr Yield
2.425B
0
N/A
Sales per activity
Passenger
85.00%
Maintenance
8.00%
Freight and mail
6.00%
Non-scheduled
1.00%
Data as of 31/03/2003
Geographical analysis of group turnover and operating profit/(loss)
£ million
Turnover
Europe
The Americas
Africa,Middle East and Indiansub-continent
Far East and Australasia
Operational profit/(loss)
Europe
The Americas
Africa Middle East and Indiansub-continent
FarEast and Australasia
2003 2002 2001 2000 1999
2,838
2,763
1,201
886
7,688
-117
223
168
21
295
3,208
2,863
1,262
1,007
8,340
3,388
3,450
1,304
1,136
9,278
3,400
3,253
1,220
1,067
8,940
3,409
3,272
1,133
1,078
8,892
-244 -172 -310 -166
144 470 308 451
91 92 62 124
-101 -10 24 33
-110 380 84 442
Sales per geographic
Core Market
United Kingdom
47.00%
Geographic areas
Europe
64.00%
Asia / Pacific
7.00%
Americas
19.00%
Rest of the World
10.00%
Data as of 31/03/2003
Balance Sheet
•
•
•
•
•
Total Asset=12900
Current Asset=2725
Total Liabilities=10626
Current Liabilities=2904
Total Shareholder Equity=2274
Balance Sheet
Shareholder's funds
Total debt and others
Total
2003
2002
£2058 £2016
10842 11646
£12900 £13662
Total assets
£12900 £13662
Income Statement
Year
Revenues*
Expenses
Net Profit*
1999 2000 2001 2002 2003
8,892 8,940 9,278 8,340 7,688
8,686 8,961 9,164 8,482 7,616
206 -21 114 -142 72
* in million(s) of Pound Sterling (EPS in Pence)
Revenue Composition
Revenue
8%
1%
Scheduled
servicespassenger
Scheduled
services-freight
and mail
6%
85%
Non-scheduled
services
Other revenue
Cost Structure
Cost Structure
Emplo yee co sts
Eepreciatio n and amo risatio n
A ircrah o perating lease co sts
Fuel and o il co sts
10%
9%
28%
13%
8%
Engineering and o ther aircraft
co sts
Landing fees and en ro ute charges
10%
8%
11%
3%
Other o perating co sts
Selling co sts
A cco mmo datio n, gro und
equipment co sts and currency
differences
Profits Over 5 Years
Net Profit*
Net Profit*
300
Profit
200
100
0
-100
-200
1999
2000
2001
Year
2002
2003
Earnings Per Share Over 5 Years
Year
Earnings per share
2003 2002 2001 2000 1999
6.7 -13.2 10.6
-2 19.5
Cash Flow Statement
• Cash and Cash Equivalents
( Net cash inflow for capital expenditure and financial investment
+ Net cash inflow/(outflow) for acquisitions and disposals
= Cash used in financing)
Cash Flow Statement
Net
Net
Net
Net
cash provided by operatiing activities
cash used in investing activities
cash (used in)/ provieded by financing activities
Cash inflow/(outflow)
Cash and cash equivalents
2003 2002
£ 1185 £ 866
-249 -327
279
75
£ 158 £ (4)
1215
614
British Airways
• Fleet Valuation
–
–
–
–
Avg Fleet age(yrs): 7.5
Avg Life (yrs): 25
Depreciation Method: Straight-Line
Avg Salvage Value: 0
Type
Concorde
Boeing 747-400
Boeing 777
Boeing 767-300
Boeing 757-200
Airbus A319
Aorbis A320
Boeing 737-300
Boeing 737-400
Boeing 737-500
Turboprops
Embraer Rj145
Avro Rj100
British Aerospace 146
Total MV Owned
Qty
5
56
43
21
13
33
24
21
27
10
28
28
16
5
Price
230.5
184.5
151.5
113.8
73.5
46
51
41.5
48
49
42
43.5
41.5
37.5
Initial ValueDep'n
1152.5
345.75
10332
3099.6
6514.5
1954.35
2389.8
716.94
955.5
286.65
1518
455.4
1224
367.2
871.5
261.45
1296
388.8
490
147
1176
352.8
1218
365.4
664
199.2
187.5
56.25
Current Value
806.75
7232.4
4560.15
1672.86
668.85
1062.6
856.8
610.05
907.2
343
823.2
852.6
464.8
131.25
20992.51
Net MVA vs Mkt Cap
Net MVA vs Mkt Cap
Est fleet value = 21US B
Current assets =2.725 B
Total debt
=5.149 B
Net MVA
=18.57US B
vs
Mkt cap=2.425B
Therefore, the assets are……undervalued
Recommendation
Good News
• Improved net
income
• Increased cash
inflow
• Reduced net debt
• Decreased operating
costs
Recommendation:
S-T: buy
Bad News
• Decreased in
revenue
• Downturn in
passenger demand
• Assets undervalued
L-T: hold
Delta Airlines
U.S. Carrier
Nov. 5 / 03
Stock Price: $12.89
Background Information
• Founded – 1924
• Headquarters: Atlanta, Georgia
• CEO: Leo F. Mullin
• Employees: 70,000+
• Daily Flights + Partners: 6,130
• Destinations: 453 cities in 82 countries
Strategies
• Build adequate liquidity
• Significant reduction in costs
• Become more competitive in the “low-fare”
sector
– Song, a highly competitive, wholly owned
subsidiary
Competitors / Alliances
Competitors
• American Airlines
• United Airlines
• International Airline
companies (minimal)
Alliances
• Atlantic Southeast
Airlines
• Comair, Inc.
• Other Delta
connection carriers
• Skyteam Alliances
• Codeshare partners
SWOT
Strengths
• Well positioned hub
networks
• Partners & Alliances
• Good Employee
Relations
• Technological
Innovation
Weaknesses
• Lower fairs due to high
competition
• Less demand due to
911
• Higher Expense
Map of Hub Network
SWOT Analysis
Opportunities
• Boston airport
terminal project
• More international
flights and coverage
Threats
• Low-fare airline
companies
• Demand for air travel
does not increase
Balance Sheet - Assets
Period Ending
Dec 31, 2002
Dec 31, 2001
Cash & Cash Equivalents
$1,969
$2,210
Total Current Assets
$3,902
$3,567
Property & Equipment
$16,524
$16,097
Other Assets
$4,294
$3,941
$24,720
$23,605
Total Assets
Balance Sheet - Liabilities
Period Ending
Dec 31, 2002
Dec 31, 2001
Total Current Liabilities
$6,455
$6,403
Non-current Liabilities
$16,530
$12,349
Total Liabilities
$22,985
$18,752
Common Stock
$271
$271
$1,639
$2,930
($1,562)
$25
$893
$3,769
Retained Earnings
Accumulated income (loss)
Total Equity
Fleet / Net MV Assets
Aircraft Type
Owned
Capital Lease
Operating Lease
Total
Average Age
B-727-200
18
-
3
21
23.5
B-737-200
-
42
10
52
17.8
B-737-300
-
-
26
26
16.1
B-737-800
71
-
-
71
2.2
B-757-200
77
3
41
121
11.3
B-767-200
15
-
-
15
19.6
B-767-300
4
-
24
28
12.9
B-767-300ER
51
-
8
59
6.9
B-767-400
21
-
-
21
1.8
B-777-200
8
-
-
8
2.9
MD-11
8
-
7
15
8.9
MD-88
63
-
57
120
12.5
MD-90
16
-
-
16
7.1
EMB-120
29
-
-
29
11.8
ATR-72
4
-
15
19
8.5
CRJ-100/200
73
-
122
195
3.7
CRJ-700
15
-
-
15
0.3
Total
473
45
313
831
9.0
NMV Asset Evaluation
Total Market Value of Owned Fleet (in millions)
Less: Total LT Debt
Add: Current Assets
Total NMV of Assets (Not including investments)
$14186
9576
3902
$8512
Delta’s market capitalization is sitting at 1.65 billion, which is less than total
NMV of assets which sits at 8.5 billion. This shows that Delta’s equity is
undervalued.
Income Statement - Revenue
Period Ending
Dec 31, 2002
Dec 31, 2001
$12,321
$12,964
Cargo
$458
$506
Other
$526
$409
$13,305
$13,879
Passenger
Total Operating
Income
Revenue Allocation (2002)
3%
4%
Passenger
Cargo
Other
93%
Income Statement - Expense
Period Ending
Dec 31, 2002
Dec 31, 2001
Salaries
$6,165
$6,124
Aircraft Fuel
$1,683
$1,817
Depreciation
$1,148
$1,283
Contracted Services
$1,003
$1,016
Other Expenses
$3,306
$3,639
$13,305
$13,879
Total Operating Expense
Expense Allocation (2002)
25%
45%
8%
9%
13%
Salaries
Fuel
Depreciation
Contract Service
Other
Earnings Trend
1803
1637
1318
Operating
Income
1998
1067
1999
2000
-1602
-1309
2001
2002
1196
815
Net Income
1998
1999
2000
-1230
-1287
2001
2002
EPS Trend
8
6.34
7.2
7.05
6
4
2
0
-2
-4
-9.99
-6.69
2001
2002
-6
-8
-10
1998
1999
2000
Cash Flow Statement
Net Cash from Operations
Less: Net Cash from Investments
Add: Net Cash from Financing
Net Cash Inflow / Outflow
$285
(1109)
583
$1977
Major Changes
• Operations – Flight equipment less spending (2321)  (922)
• Investing – Boston Airport Terminal (485)  58
• Financing – Short Term Obligations 701  (1144)
Ratios
Year 2002
Delta
American
United
P/E Ratio
N/A
N/A
N/A
P/BV Ratio
2.37
N/A
N/A
0.798
0.712
0.783
ROA (TTM)
-3.28%
-5.49%
-16.26%
ROE (TTM)
-66.72%
-351.26%
N/A
Profit Margin (TTM)
-6.12%
-9.60%
-27.85%
Operating Margin (TTM)
-8.75%
-7.56%
-21.02%
Valuation Ratios
Internal Liquidity
Current Ratio (MRQ)
Management Effectiveness
Profitability Ratios
Operating Data
Year
2002
2001
Revenue Passenger Miles (mill)
102,029
101,717
Available Seat Miles (mill)
141,719
147,837
Passenger Load Factor
72.0%
68.8%
Breakeven Passenger Load Factor
79.0%
77.3%
Cargo Ton Miles (mill)
1,405
1,583
Fuel Gallons Consumed (mill)
2,514
2,649
Number of Aircraft in Fleet
831
814
Average Age of Aircraft (years)
9.0
9.1
75,100
76,300
Employees
Stock Valuation
Delta Air Lines (NYST: DAL)
Last Trade
12.89
Day’s Range
12.68 – 13.04
Trade Time
Nov 5 / 03
52wk Range
6.56 – 16.05
Change
-0.06 (0.46%)
Volume
2,421,300
2,505,181
Prev Close
12.95
Avg Vol (3m)
Open
12.95
Market Cap
1.59B
Bid
N/A
P/E (TTM)
N/A
Ask
N/A
EPS (TTM)
-6.741
19.40
Div & Yield
N/A (N/A)
1y Target Est
Stock Price Chart
Recommendation
Hold – Moderate Buy
• Undervalued according to NMV assets
• High market share
• No dividends & negative earnings
• Very volatile industry
Today’s stock price: S$12.50
Exchange rate: S$1 to US$0.57
Background
• Found in Oct. 1972
– Separated from Malaysian Airways
• Started from 10 aircrafts flying 22 cities
• Right now, spans over 90 cities globally
with about 95 aircrafts
• Singapore government owned 57% of
shares
Background con’t
• Ranking in 2002
– World 4th largest airline in RPK
– World 2nd largest airline in freight carried
Alliances
• Equity partner
– acquired 49% shares of Virgin Atlantic
Airways in March 2000
• Star Alliances
– Joined in April 2000, become 11th members
with such as Air Canada, United Airline,
Lufthansa, Thai Airline, ANA Airways.
Competitors
• Cathay Pacific
• Japan Airlines
• Malaysian Airlines
SWOT Analysis
• Strengths:
– Low debt (debt to equity traditionally <0.1)
– Encourage employees’ motivation
• Profit-sharing program
– Young aircraft , average age of 5 years old
– Excellent in-flight services
• e.g.: free drinks, complimentary headsets…
SWOT Analysis con’t
• Weakness:
– Relied on long haul flight
– Located in SARS outbreak area
SWOT Analysis con’t
• Opportunities:
– Work with partners
– Demand increase
– Competitors’ struggle
SWOT Analysis con’t
• Threats:
– Global economic weakness
– SARS comeback again
– Fuel cost increase
– terrorism
Strategies
• Cost cutting
– No-pay leave
– Wage cuts
– Reduction in staff
– Less flying allowance paid
– Postpone profit-sharing bonus
• Assets selling
– sold 5 Pratt and Whitney engines finance corp.
Strategies con’t
• New route developing
– Bangalore
– Shenzhen
– L.A.
• Re-Fleeting plans
– Combination of Air-Bus and Boeing
• Price cutting, promotion, flights adding
Balance sheet
Balance Sheet
(in S$million)
Shareholders' funds
Total debt + others
Total
30-Sep-03 30-Jun-03 31-Mar-02 30-Sep-02
$10,614.0 $10,397.7 $10,708.8 $10,480.5
8,798.7 8,380.5
8,475.2 8,387.0
$19,412.7 $18,778.2 $19,184.0 $18,867.5
Total assets
$19,412.7 $18,778.2 $19,184.0 $18,867.5
Earning per share
EPS (cents)
EPS over 5 years
140
120
100
80
60
40
20
0
FY 98-99
FY99-00
FY 00-01
Financial year
FY 01-02
FY 02-03
Operating profit
Operating profit over 5yrs
1,600.0
1,400.0
S$million
1,200.0
1,000.0
800.0
600.0
400.0
200.0
FY 98-99
FY99-00
FY 00-01
Financial year
FY 01-02
FY 02-03
Cost structure
Cost structure in Q2/03
3%
4%
fuel
22%
5%
s taff
6%
aircraft depreciation and rental
6%
aircraft maintenance and
overhaul
handling
17%
9%
s ales
landing and parking
11%
17%
inflight meal and other
pas s enger cos ts
communication and IT
others
Income statement
Income statement
con’t
Cash flow statement
(in S$million)
Q2/03 Q2/02 H1/03 H1/02
Net cash provided by operating activities
$ 456.8 $ 459.0 $ 168.9 $ 1,178.3
Net cash used in investing activities
(218.1) (219.2) (365.4) (581.7)
Net cash (used in)/provided by financing activities (139.4) (123.9) 163.2 (379.9)
Net cash inflow/(outflow)
$ 99.3 $ 115.9 $ (33.3) $ 216.7
Cash and cash equivalents at end period
$730.3 $1,241.0
$730.3 $1,241.0
Operating data
Passanger
Passengers carried (000's)
Revenue passanger-km (million)
Available seat-km (million)
Passenger load factor (%)
Cargo
Cargo and mail carried (M kg)
Cargo load (M tonne-km)
Q2/03
3,644.0
17,772.8
22,379.8
79.4
264.7
1699.6
Operating data
con’t
Operating data
con’t
Ratios
ROA
ROE
ROI
Net debt to equity
Price to book equity
As at
As at
30SEP03 30JUN03
0.02
-0.02
0.03
-0.03
0.54
-0.47
0.10
0.12
1.44
1.46
Stock valuation
• Ticker: SIAL.SI
• Trade in Singapore Stock Exchange
• Shares issued (as at 30SEP03): 1.22B
Stock valuation
SIA LTD (SES:SIAL.SI)
Change
Prev Cls
Last Trade
7 Nov ?12.50
con’t
0.00 (0.00%)
Open
Volume
12.5
12.5
1,089,000
Day's Range
Bid
Ask
P/E
Mkt Cap
Avg Vol
12.50 - 12.70
12.4
12.5
14.3
P/S
N/A
N/A
Div/Shr
Div Date
N/A
0.15
11-Aug
PEG
Yield
Ex-Div
N/A
1.2
29-Jul
52-wk Range
8.25 - 12.90
N/A
N/A
EPS?ttm)
N/A
0.874
0
5-year price chart
1-year price chart
Recommendation
• Moderate Buy
– Good management
– Recover so fast
– Low debt
– Volatile stock, but upward trend