I love this bit from the media release:
“Current accounting rules result in certain material movements of hedge derivatives being
recognised in periods that differ from the underlying exposures,” he said.
“This results in significant earnings volatility and does not reflect the underlying economic
outcomes of the Group’s hedging strategy.
“Qantas uses Underlying PBT to assess the performance of the Group and its segments by
matching all hedge derivative gains and losses in the same reporting period as the underlying
exposures being hedged. In addition, Qantas removes the impact of non-recurring items to
assess the underlying quality of returns.
In other words they've found a way to try and fool the public that $90m is actually $267m. I'd bet anything that if this measure gave a lower result then it wouldn't have been reported.
The rhetoric and spin in this press release is unbelievable - must be a flurry at QCC at the moment as management types scramble to get their kpi's adjusted.
Anyway the market hasn't fallen for it with the share price down 24c.