Boeing projects 700 aircraft for Africa; South African Airways revenue down -15%


Boeing forecast on Tuesday (21-Sep-2010) air carriers in Africa will experience steady growth over the next 20 years as air travel there continues to grow with the economy.

The African economy is projected to grow 4.8% in 2010 following 2.9% growth in 2009. West Africa shows up as the strongest region with foreign interest in petroleum development. Boeing's forecast calls for the delivery of more than 700 aircraft with a value of approximately USD80 billion for the African market over the next 20 years.

Unlisted South African Airways reports (13-Sep-2010) the following financial updates for the 12 months ended 31-Mar-2010:

  • Revenue: USD3,124 million. -15% year-on-year;
  • Operating costs: USD2,941 million, -13.9%;
  • Profit before tax: USD83.5 million, +40.6%;
    • Airchefs: USD5.0 million, compared with a loss of USD1.8 million in p-c-p;
    • Mango: USD2.6 million, +9%;
    • SAA Technical: USD1.3 million, compared with a loss of USD24.0 million in p-c-p;
  • Net profit: USD81.4 million, +45%;
  • Passenger numbers: 6.7 million, -2.4%;
    • Domestic: n/a, -6%;
    • International: n/a, -5%;
    • Regional: n/a, +9%;
  • Cargo volume: 119,000 tonnes, -14%;
  • On-time performance: 85%;
  • Operating cash flow: USD238.1 million, compared with a negative cash flow of USD252.1 million in p-c-p.

See related CAPA profile: Financial Results

Middle East shares were on the rise with Royal Jordanian (+0.6%), Air Arabia (+0.7%) and Kuwait National Airways (+1.2%) shares gained while Jazeera Airways remained stable.

Selected African and Middle Eastern airlines share price movements (% change): 21-Sep-2010

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