Airbus is the company that keeps on giving even when it’s not delivering – tucked away in the Qantas interim results were another $98 million in “liquidated damages” for the ever-later A380.
That would be on top of the $104 million that was added to last year’s profit as compensation for the Airbus no-show. Of course it’s not real money – just a book-keeping entry that will be eventually sorted out somewhere down the track, maybe with discounts on the final prices paid, maybe a free plane or help with leasing others, maybe some cash. But it all goes to the bottom line, which I presume helps in obtaining bonuses.
The number was fingered by Goldie Were analyst Paul Ryan but missed by the media. This is from GSJBW’s morning report:
Reported earnings included $132 million in restructuring charges and $99 million in losses on open hedge positions, partially offset by $98 million in further liquidated damages from Airbus due to delayed A380 delivery and $52 million in unredeemed Frequent Flyer revenue.
Analysts discount all that sort of stuff in looking at how the real business is going – and of course it’s going very well indeed with valuations creeping closer to the APA takeover offer, but still pulling up short.
And given that $99 million in hedge losses, Qantas CFO Peter Gregg is probably one person who won’t mind if the oil price does get back to US$60 a barrel. It would make him look smarter.
Now, about those fuel surcharges on tickets…
Crikey is committed to hosting lively discussions. Help us keep the conversation useful, interesting and welcoming. We aim to publish comments quickly in the interest of promoting robust conversation, but we’re a small team and we deploy filters to protect against legal risk. Occasionally your comment may be held up while we review, but we’re working as fast as we can to keep the conversation rolling.
The Crikey comment section is members-only content. Please subscribe to leave a comment.
The Crikey comment section is members-only content. Please login to leave a comment.