Originally Posted by
43Inches
To be fair QF made $2 billion because it had that much paid by customers for flights before covid that were not used, and now in the last year they charged them again ...
To be fair, that is complete and utter nonsense. Revenue received in advance sits on the Balance Sheet, not the P&L. Qantas is on track to make around $2 billion in profit because revenue is up by around 4.5 percent over the corresponding period pre-COVID, and their expenses are down by around 3.9 percent.
If Rex can't turn a profit under the current conditions, then there is something fundamentally wrong with their business model. They reckon that their regional revenue is better than in FY2019, and for month after month they spruiked announcements headlined
Rex's Record Domestic Performance (September 2022) and
Rex Announces Increased Profitability (January 2023). They should end the FY with about $640 million in revenue and still end up losing $35 million. The fact that they're trying to fob off a drop in business travel over May - June on "
corporate travel budgets being exhausted following exponential increases of international fares" tells you pretty much everything you need to know about their grasp of the market and their business culture.