Airlines not ready to resume stock buybacks

Major U.S. airlines are not ready to resume stock buybacks after a ban by Congress was imposed last month, amid pressure from unions to fix operational issues and boost worker pay.

In an emailed statement, United Airlines said that our highest financial priorities are restoring our balance sheet and investing in our employees and customers.

The carrier plans to deliver more than 300 new aircraft over the next several years.

After a borrowing binge during the Pandemic, airlines are prioritizing debt reduction after a roaring of air travel.

The big three national carriers - Delta Air Lines, United and American Airlines had a combined net long-term debt of $85 billion at the end of the second quarter.

There are investor concerns about carriers ability to repair balance sheets, which has resulted in a shortage of workers and mounting economic worries.

Delta's financial priority is restoring its financial foundation by generating sustained and meaningful profitability and cash flow to support debt reduction and reinvestment in the business, the airline said.

In August of this year, American Airlines pointed out to Chief Financial Officer Derek Kerr in an interview with The Associated Press that the carrier had no plans to do any share repurchases, and all of its excess liquidity would be used to pay off debt.

As part of the federal COVID 19 relief package, airlines were not allowed to buy back their shares. Airline unions, representing hundreds of thousands of workers, launched a public campaign against stock buybacks in August. Some U.S. lawmakers are pressing airlines not to resume stock buybacks.

Delta, American and United Airlines are expected to report earnings in the next few weeks.