Originally Posted by
ScepticalOptomist
That’s the problem / point you’re missing - did they really or did QF foot a lot of the bills for JQ making the figures above look better for JQ to suit the narrative?
And thanks to clever accounting, we will never really know.
My two cents: You can only lower the operating cost to a certain point, and excluding the external factors of which you have no control over. But the magic happens when you make more money, as it's not sustainable to just focus on cost cutting. I think that Jetstar domestically has a scale problem given our tiny population and vast distances. Internationally, there is way too much competition with a lower cost base.
Compare Jetstar to say that of RyanAir, with the massive European market it has at its disposal. I wouldn't be surprised if Qantas is covering some of the bills for Jetstar, just to ensure that it appears more profitable than it really is.