Joe:

EBITDA...earnings before interest, taxes, depreciation and amortization. This is a term dreamed up by investment bankers to make companies appear more profitable than they really are.

The big item here that the definition conveniently excludes is depreciation. Because it is a non-cash expense, it is excluded. But, when the damn plane is purchased, it certainly is a cash expense! (although it is capitalized and recorded as an asset on the balance sheet.) But they didn't expense it then! So, according to the definition, the cost of an airplane should never be expensed!

If you are EBITDA positive, it certainly does not mean you are profitable. It means, the airline is profitable (on an operating basis) if they can buy airplanes for $0.

WMABO