Jetstar $140m profit

[Phalanger]

What drives me insane about business in this modern era is that fact that a 'profit' is not good enough anymore!!

It is actually. Take for example an investment. Average over the ASX is normally > 11% pa over a decade. This means Qantas must be earning at this rate to justify investment. If it can show it can do so in the future, the shares will go up (eg. with yesterdays announcement the shares went up, not down, because analysis think the changes will move Qantas towards this position). As opposed to a year ago where they were dropping because people considered the costs too high in the future.

The trouble is when people get too worried, stock falls. Once the market cap falls bellow the assets real value, the company is likely to be split up and sold off. This is the worry for BlackBerry's manufacture right now. The really worry for Qantas is not making a loss, but if people walk with their feat and devalue the company.

Remember the shares are someone's money, and in the case of Qantas a lot of Australian families had hard earned money in the company. Saying they should be happy with just a profit (that devalues their earnings) is not really fare to them...

[Artificial Horizon]

Hey Fuel Off,

Nice to see you seem so eager to see Jetstar go down the tubes at the cost of so many job

I don't care how much I don't like a company or what they stand for, I would never wish unemployment on anyone.