United Airlines Says Accounting Change Leads To More Revenue

[DieselDragRacer]

http://online.wsj.com/article/SB10001424052748703709804575201713862512840.html?mod=rss_whats_news_us

 

[Mike man]

Can anyone say ENRON?

 

[bluechunks]

Can anyone say ENRON?

Yes, but in this case it is the opposite.

UA changed their accounting method for expired FF miles to an extremely aggressively conservative method during BK that exacerbated net losses on paper while the company generated positive operating cash flow quarter after quarter. (The old airline financial adage stands: watch the cash and not the "net.")

Now they are changing back to a more typical method just when they would like the "net" numbers to improve.

Coincidence? Hardly.

 

[contrail67]

Yes, but in this case it is the opposite.

UA changed their accounting method for expired FF miles to an extremely aggressively conservative method during BK that exacerbated net losses on paper while the company generated positive operating cash flow quarter after quarter. (The old airline financial adage stands: watch the cash and not the "net.")

Now they are changing back to a more typical method just when they would like the "net" numbers to improve.

Coincidence? Hardly.

Especially right before the earnings report on 4/27. Hmmmm.