Aéroports tot up 2020 losses
Aéroports de Montréal is totting up its losses from 2020. But the numbers don’t add up for me. I think of losses in the sense of what you make vs. what you spend, but the big number here seems to be arrived at by comparing 2020’s profits to 2019’s.
Says here that the operating costs for 2020 were $158.6 million and the revenue was $282.2 million, so it seems to me they’re still well in the black and have nothing to complain of. In fact they’re doing better than I would’ve expected. Maybe someone can explain to me how you look at a disappointing profit compared to last year’s profit, and call it a loss.
steph 17:13 on 2021-03-24 Permalink
They always calculate losses to ‘expected gains’. It’s ass-backwards.
Spi 18:02 on 2021-03-24 Permalink
The article is literally about ADM publishing their yearly report, you could look up the yearly report that’s very easy to find on the ADM website.
https://www.admtl.com/sites/default/files/2021/T4-2020-A.pdf
Kate 18:27 on 2021-03-24 Permalink
Thank you both. You can see I am not a trained economist. I think it is ass-backwards.
Tim F 21:56 on 2021-03-24 Permalink
Not having read the report, I expect the cargo business in Mirabel (especially extra orders from Amazon) probably fared better than passenger service in Dorval.
ant6n 05:44 on 2021-03-25 Permalink
The report ist 4 pages long.
In 2019 they made a profit of 100M profit on 700M of revenue.
In 2020 they made a loss of 230M on 280M revenue (with only slightly reduced expenses).
Although 170M of the cost is depreciation. That’s not a cost that you have to pay with money, its just spreading the initial cost of investments over the years of use, so won’t affect cash flow in the short term – that’s perhaps why they focus on only operating costs (160M), although there are other expenses, like pandemic related expenses (40M), etc. that will cost the airport money today.