Originally Posted by airbus320
He starts with an oil price assumption of $35.25 (U.S.) a barrel for 2005, then calculates that for every $1-a-barrel change in the annual average, ACE will be affected to the yearly tune of $28-million (Canadian) in EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rent)."
G&M
http://www.theglobeandmail.com/servl...ery=air+canada
EBITDAR? I think someone at the G&M need to take a remedial accounting class. As far as I know there is no such measure. Perhaps they mean EBITDA (earnings before income taxes depreciation and amortization).
Even assuming that this was some specially generated calculation made up by the analyst referred to in the article - it seems more or less meaningless. EBITDAR as set out above is basically only gross revenue less operating expenses such as fuel, maintenance and salaries. Why omit rental or lease charges? Afterall aircraft leases are an essential element of airline operations. I cannot think what benefit taking those out of earnings has on financial disclosure???
MBALLB
[Edited for punctuation]