Fair enough.
Why is Qantas being labelled the basket case able to return $165million EBIT, on revenues of $5706 million or 2%
Jetstar is being labelled a wildly profitable business segment able to return $143 million EBIT, on $1346 million or 10%
All things being equal, never mind that Qantas is liable for the groups taxes, Qantas's return on revenue would be 15%. Jetstars return on revenue would be 22%.
Remebering that lease costs attribute $131million for Jetstar's operating costs as well.
Total revenue between the two $7052 million of $308 million EBIT, or 4.3% return on revenue.
Oranges are being compared to Kangaroo's in this case.
My point is, if Jetstar were a separate entity out on its own, the depreciation and amortization that it would be liable for, if they were required to actually pay for their fleet of 59 (Australian) aircraft, would wipe out their profit.