But the biggest failure in his article is that he doesn't recognise the recent profit as being way thinner than it sounds:
Quote:
With a pre-tax profit up 46 per cent to $552 million, despite a claimed loss of $216 million on international fights, Qantas is far from the imminent basket case ...
He has made the same mistake as the unions. $552 million sounds like a lot of money, but in fact it is a tiny profit and represents a razor thin margin (about 1.6%).
FGD135,
The $552 million Profits Before Tax for 2011 is well up from $377 million PBT in 2010. This is despite the grounding of the A380 fleet post QF32 incident and the natural disasters earlier this year that have a costing of $224 million.
The $249 million profits after tax for 2011 are more than double that of the $116 million of 2010, despite the problems mentioned above.
Earnings per share of 11c are again well up from the 4.9c of 2010.
This year has been the best year for QANTAS since its record year back in 2008 with a PBT of $1,408 million and after tax profits of $970 million and earnings per share of 50.2c Although, Dixon always played the part of Chicken Little and the sky was always falling in.
The question that hasn't been answered is how is QANTAS International losing $216 million per year? When international revenue is up, passenger numbers are up .
This could be creative accounting with aircraft depreciation and new aircraft purchases in the one year