Will QAN survive?, page-952

You may wish to consider net tangible assets per share.

At the end of FY2011, Qantas had $2.45 of assets for each share. At the end of FY2020, Qantas had $0.26 of assets for each share.

In order to keep themselves afloat, they have sold and leased back aircraft and buildings. They no longer have those assets but they have an ongoing commitment to make lease payments, regardless of the number of flights they make.

Mind you, lest you think covid was the sole reason for the demise of asset backing, QAN only had $1.43 of assets for each share at the end of FY2019. They burnt a lot of capital in the capacity war with Virgin in the last decade.

The important question you need to ask yourself is, will the large market share that QAN has translate into enough income to pay the leases, recover the capital and prepare the company for the replacement of the ageing 737 fleet?