Airlines Find Unexpected Benefits in New Lease Accounting Standards

According to the Wall Street Journal, the newly revised lease accounting standards do not count airline gate and ticket counter leases as liabilities, allowing airlines to exclude those leases from their balance sheets.

The Journal reported the change comes from the categorization of the airport leases as variable leases, which do not have to be reported in the same way as operating leases.

The Journal added the new rules will likely benefit multiple airlines with better bond ratings, allowing the companies to carry higher levels of debt than they would be able to otherwise.

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Terry Mulreany
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