Originally Posted by
TimmyTee
Qantas must have been up for murder and genocide when they announced their $2.8 billion loss a few years ago according to all the accountants on here.
For the rest of us mere mortals, here is an article explaining why it’s one of their best results in some time:
https://www.theage.com.au/business/c...29-p500fr.html
A management timed impairment is what Qantas did and Virgin did the same.
As did Etihad, impairing the A380 to zero value on the books.
Whether the unions at Virgin are stupid enough to buy the largess of the 'loss' and agree to pay freezes only to witness 'an amazing transformation' the next financial year is an other story entirely.
What that means is, the statutory loss of $2.8 billion does not represent a cash loss to the company, rather it is a paper loss in the value of its assets. It is a bit like when the value of your house goes up, or down, your wages and your bills do not move.So in terms of the money in the door and out the door, Qantas was still in the red. The underlying loss of $646 million again looks like a big number, and it is, but crucially it was better than some had expected.For the first time in a long time, chief executive Alan Joyce said investors could expect an underlying profit in the first half of this financial year.
Mr Joyce even correctly flagged the 'turnaround' as the loss was on paper, as the 747 fleet was impaired.