I would guess that the debt that is being serviced (assuming the debt service is the difference between the operating profit/loss and the net profit/loss), is that from investment and will be paid down or off as a result of a IPO. This would mean that the operating profit/loss probably paints a more accurate picture of what the airline's results may indicate, post IPO.
S
Yes, it is the difference and there lies the problem. If the company is deeply in debt and is continuing to lose significant amounts of money as it is right now, then that is going to affect the total amount of cash they are going to get if they shoot for an IPO. That debt doesn't just "disappear" in the eyes of an investor just because he is buying shares of this company in an IPO or any sort of offering for that matter. That investor is buying a portion of that debt with his dollars. Do you want to give me some of your hard earned dollars to buy my debt?
If you were looking to invest in an airline, would you invest in an airline that hasn't earned a dime in its entire existence and continues to lose 1 of every 10 dollars it brings in as I type? Or would you look at other possibilities? It's almost like they are using this future IPO as some sort of white night that is going to save the airline when that magic day happens. But if there ever is even any interest in an IPO, the day after it closes VA will likely still be a money losing airline that continues to hemorrhage cash. What is the attraction in that except for the shiny new red shoes their flight attendants will be wearing?