Comair's 1HFY2014 revenue supported by new aircraft, carrier well placed for full FY2014

Comair (South Africa) attributed (11-Feb-2014) increased revenue in 1HFY2014, ended 31-Dec-2013, to a 15% increase in capacity following the replacement of Boeing 737-300 aircraft with four 737-800s, operated under the kulula and British Airways brands. Comair's fuel and maintenance costs increased due to the weakening rand. Increased capacity in the domestic market negatively affected seat occupancy and placed competitive pressure on ticket pricing. The carrier reported "shrinkage in the South African domestic market" and it does not foresee early growth in market volumes as ticket prices will remain at values necessary to offset continued devaluation of the rand. The carrier also does not anticipate near-term recovery in local consumer spending. Comair expects the entry of new carriers to the market to exacerbate overcapacity issues. The carrier expects its new aircraft and technology-driven operating processes to allow it maintain an advantage over its competition. Comair also sees opportunity for growth in its travel, flight training, catering and airport lounge businesses. The carrier said it remains well placed for the full FY2014. [more - original PR]