Understanding the leasing fees in the accounts

[hjp766]

Hi.

My apologies if it has been asked before but all my searches seemed to turn up replies of 2011 vintage.

I am coming towards the end of the prepay on my leases. Therefore there should in theory be no weekly lease payment (yet).

In the weekly/monthly income statements that show profit/loss there is always a lease cost. Am I correct in my reading this that this is why we have a better cashflow (from lease prepayment) but that the numbers on the income statement are what will actually be the case once weekly/monthly etc. leases are being collected. i.e. if the page says net operating profit of X that is what we will actually increase by per week once leases are being collected.

Thanks in advance.

[sanabas]

look at cashflow statement. It starts with operating profit, then there's a line for 'Adjustments of items where a payment is not included'. Those are leasing costs that are being counted as expenses (or income if you're leasing stuff to others), but not yet paying weekly cash amounts for. And yes, if you have no owned planes, no planes currently in the prepaid period, then cashflow will match profit.