Radarspotting
Miscellaneous => Aviation News => Topic started by: mhm on February 21, 2013, 06:49:18 AM
Qantas profits have risen, boosted by compensation from Boeing after it cancelled 787 orders and amid narrowing losses on its international operations.
It made a net profit of A$111m ($114m; £75m) in the six months to the end of December, up from A$42m a year earlier.
The figure includes A$125m compensation that Qantas received from Boeing.
The carrier said that losses at its international division, which has been a key area of concern, narrowed to A$91m from A$262m a year earlier.
http://www.bbc.co.uk/news/business-21528443
I'm not an accountant but it seems strange to include compensation as profit. If they don't have the aircraft how are they going to provide the services in the future?
And... if you take the A$125m compensation from the A$111m profit then they actually made a net loss of A$14m over the six month period.
It can be taken as revenue but should be noted in the published accounts as an exceptional item.
It has to shown, just like a bonus.
Cheers, Mike.