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Perfect thank you!

From what I gathered contract assets, largely made up of volume incentive receivables are forecasted, i.e. they may not materialise if customers cancel their flights. This will be reflected in a larger loss allowance as the contra account. Thus, I conservatively discounted it from my calculation given these are unprecedented times.

@SLewis

You’re welcome.

I see your point with regard to volume incentives receivables, which represent ~22% of Total Current Assets.

On the other hand, most flight cancellations (unless contracted otherwise) would entail cash inflows from cancellation fees, for which there isn’t a “probability-weighted” receivable in the Balance Sheet.

So, I would expect the two things to offset one another to some extent, from a cash perspective.

Cheers