All in all, Boeing looks to be in pretty solid shape. It's generally positive for almost all defense contractors, provided that something that looks like this proposal is what's passed.
It doesn't surprise me that people are buying it as high as it is now. But it's not something I would advise. I do expect it to come down substantially.
The strength obviously in this quarter is in the commercial airliner business, and it's going to be that way for the next three or four years.
Crude is up today and that contributes, but the undertone of this earnings release are a reminder that maybe in the long term things aren't going to turn great again. It's still a brutal industry to work in.
In a year or so, is United going to have the most competitive cost structure among the legacy carriers?
Are they going to be hugely profitable? No, not now because of the way fuel is. They're going to be strong enough to live to see better fuel prices and future profitability as the cycle strengthens.
I don't think it was a clear victory for one side or the other, although I think that the Machinists could've gotten more.
At these prices, it's substantially overvalued.
I think this certainly has to make management think a lot harder about bankruptcy. I think it's definitely better than a 50-50 chance that they'll go bankrupt before the end of this year.
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