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10-Sep-2014 10:04 AM

Comair reports 'strong results' for FY2014, income up 16%

Comair (South Africa) reported (09-Sep-2014) "strong results" for the 12 months ended 30-Jun-2014. Revenue increased 17% year-on-year to ZAR6.28 billion (USD574 million) and total comprehensive income increased 16% to ZAR265 million (USD24 million). Earnings per share were improved by the repurchase of 10% of issued shares in Nov-2013 and Dec-2013. The company declared a final gross cash dividend of ZAR0.13 (USD0.01) per ordinary share. The carrier attributed revenue growth to improved yields and a 3% increase in passenger numbers. Capacity growth by Comair and its competitors resulted in a 6% decline in average seat occupancy rates. An 18% weakening of the average exchange rate during FY2014 contributed to a 19% increase in fuel prices. The carrier's affiliated flight training, travel product distribution and airport lounge businesses continued to perform well. Comair CEO Erik Venter said the airline's Boeing 737-800 aircraft continued to performs exceptionally well. The carrier expects to take delivery of four 737-800s in late 2015 and 2016 and eight 737 MAX 8s between 2019 and 2021. Mr Venter said the airline remains confident of further profit growth in FY2015, despite a sluggish economy, declining passenger market and high operating costs. Mr Venter said, "The ongoing upgrades to the fleet will continue to improve operating efficiency while at the same time enhancing the revenue potential per flight. We are also focused on implementing technology solutions to enhance our operating performance, customer service experience and revenue generating opportunities." [more - original PR] [more - original PR - 2]

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