Another Misleading Profit Measure: EBITDAR

Operating leases once did not appear on the balance sheet, an omission corrected by the FASB and IASB in 2018. However, lease rentals were always reported on the income statement, as they are now.

Well, the shenanigans never cease. The measure, EBITDAR used by airline analysts, adds back operating lease aircraft rental expenses. EBIT and EBITDA are bad enough but adding lease expense to the add back to net income is beyond the pale. Are airlines flying planes at no cost?