KCQs - EXTERNAL OR INTERNAL RISKS HAVE MORE IMPACTS ON PROFITABILITY?

Somehow I always fall asleep every time I go through the financial reports and look at the numbers and all the financial jargons. I wonder if there is a better way of understanding the picture of a company without dwelling too much into numbers. Hence, I decide to read through business operation and developments over the years. Besides, I enjoy reading better than looking at data.

I find it is interesting that most of annual reports for aviation industries do put a lot of emphasis on general and external factors impacting its profitability. El Air, every year, "blames" the same factors:

(i) High competition from other airlines, especially from low-cost airlines
(ii) High fuel prices leading to higher input costs
(iii) Fluctuation in exchange rate
(iv) Unusual events such as epidemic, outbreaks or terrorists attacks etc.

Not a lot was mentioned in relation to the way the airlines were managed and the way that the board of directors made decisions, set policies and directions for the airlines. For example, in its annual reports, it blames interest rate increase affected its profitability. But what about admitting that the board has made the wrong decision in taking out a significant loan amount at VARIABLE rates to finance for new aircraft. Why did not they think about fixing the rate? Why did not they think about using interest rate swaps or futures to lock in the rates? I guess, it is commonsense that noone like to accept they make mistakes. But why make the same mistakes every year for the past 3 years???

Below is the list of external and internal risks factors and the effect of each risk on company's profitability (ranking as minor, moderate and major).

Interestingly enough, the company ranks majority of its specific-company risks are of material effect on profitability. However, there are not many strategic policies in place to overcome those moderate and major risks. Instead, years on years, it is convenient to blame of external factors for making losses. Perhaps, it is an industry standard which every other airlines does the same thing?