some years its spent buying aircraft etc, some years its profit. Just looking at the capacity growth of competitors really makes me question whether this short-term outlook (booking a big profit now) isn't going to have long-term consequences. How much profit could there be if QF matched that capacity growth?
Hasn't Qantas already made huge orders for A380, 787, 737 and A320 aircraft (Jetstar)? Profit is not used to purchase aircraft persee profit is the net income after all operating and financing costs are made.
Capital expenditure does not go (directly) through the income statement. Only the interest expenses related to the loans and the depreciation expenses related to fixed assets hit the P&L which in turn effect profit.
Although if profits are not distributed to shareholders then they are usually put into equity reserves which usually along with a combination of debt is used for major aquisitions.....