Comair's earnings soar
Johannesburg - Listed airline company Comair on Wednesday reported a strong first half, with attributable earnings up 95 percent to R52.2 million for the six months ended December 2006.
The airline, which operates British Airways and kulula.com in South Africa, said revenue rose 16 percent to R1.128 billion, while operating expenses grew to R1.044 billion from a previous R923 million.
Diluted headline earnings per share rose to 12.6 cents from 6.6 cents before. No interim dividend was declared as it is company policy to declare one dividend annually in September.
Comair joint chief executive officer Erik Venter described the results as "a very encouraging performance despite a record high average fuel price which added R60 million to operating costs."
Comair's fleet replacement programme continued to improve operating efficiencies while enhancing the potential for revenue growth. A further Boeing 737-400 was purchased for cash during the period, and it plans to upgrade three additional aircraft to more modern and efficient models during the remainder of the financial year.
Venter added that early indications are that there may be some relief on the fuel price for the second half of the year, however these gains may be negated by downward pressure on ticket prices due to the launch of a third state-owned airline which has increased capacity in an already overtraded domestic market.
"We will continue to debate with, and challenge government on the subject of the need for loss-making state-owned airline's in the domestic market, however know that our key to overcoming the industry challenges remains our drive to improve operating efficiencies through our fleet replacement programme, increasing our potential for revenue growth and naturally, our focus on consistently delivering the highest levels of service to our customers," he said. - I-Net Bridge
Article from http://www.busrep.co.za/
Comair car hire? That would be interesting! For the time being, contact us at http://www.southafrica-carhire.com
The airline, which operates British Airways and kulula.com in South Africa, said revenue rose 16 percent to R1.128 billion, while operating expenses grew to R1.044 billion from a previous R923 million.
Diluted headline earnings per share rose to 12.6 cents from 6.6 cents before. No interim dividend was declared as it is company policy to declare one dividend annually in September.
Comair joint chief executive officer Erik Venter described the results as "a very encouraging performance despite a record high average fuel price which added R60 million to operating costs."
Comair's fleet replacement programme continued to improve operating efficiencies while enhancing the potential for revenue growth. A further Boeing 737-400 was purchased for cash during the period, and it plans to upgrade three additional aircraft to more modern and efficient models during the remainder of the financial year.
Venter added that early indications are that there may be some relief on the fuel price for the second half of the year, however these gains may be negated by downward pressure on ticket prices due to the launch of a third state-owned airline which has increased capacity in an already overtraded domestic market.
"We will continue to debate with, and challenge government on the subject of the need for loss-making state-owned airline's in the domestic market, however know that our key to overcoming the industry challenges remains our drive to improve operating efficiencies through our fleet replacement programme, increasing our potential for revenue growth and naturally, our focus on consistently delivering the highest levels of service to our customers," he said. - I-Net Bridge
Article from http://www.busrep.co.za/
Comair car hire? That would be interesting! For the time being, contact us at http://www.southafrica-carhire.com
Labels: South Africa - Airlines
