Originally Posted by
KenHamer
While my main point was to lampoon the persistent release of statistics that are essentially meaningless (
we had more seats painted with purple and orange diagonal stipes than any other airline in history) $115 million doesn't strike me as particularly impressive given Air Canada's size, or compared to other airlines, even if it is better than last year.
The problem is that, as noted elsewhere, they didn't actually show a $115M profit, but rather a
$23M loss. The only way to morph that into a "profit" was by the use of
non-Generally Accepted Accounting Principles.
If anything is impressive it is Air Canada's ability to spin something "bad" as something "good."
(Of course they may have made money on things like currency exchange. But when I noted Delta's $4 Billion profit in one quarter last year lots of people whined that it wasn't really real because about $1.5 Billion came from "things like currency exchange" and fuel hedging.)
You forget to look at the non operating expense which is typically depreciation and Interest plus possibly some back pension catchup. They also stated their profit AND LOSS was non GAAP.
Originally Posted by
The Lev
You have things backwards...
but what it also does is serve to show that excluding items that the company can't really control, they have improved operating earnings and cash flow considerably.
BINGO!!! And don't forget depreciation which is a large non cash liability on their BS as they are now adding more planes to the fleet.
cash reserves are holding steady at just over $2BB which is very good considering they purchased one new B777 in the quarter