1time Holdings' shares were flat yesterday as the airline reported a net profit of USD5.8 million for the 12 months ended 31-Dec-2009, compared with a loss of USD1.3 million in the previous corresponding period. The company also reported a 3,029% year-on-year rise in operating profits, to USD11.8 million for the year, while the LCC operation reported a 306% rise in operating profit, to USD19.4 million.
The company stated 1time performed well last year, growing revenue to ZAR1,040 million on marginally lower yields and a 12% passenger increase, to 1.8 million. The passenger growth was achieved despite the overall domestic travel market declining by an estimated 7% for the year, leading to further market share gains for the airline.
1time Holdings expects further revenue growth for the carrier on expanded capacity and higher passenger volumes for 2010. There is uncertainty surrounding the impact the FIFA World Cup will have on earnings for the year. Margins at the airline will be largely dependent on the average Rand fuel price achieved for 2010. Hedging is, however, considered and assessed on an ongoing basis.
kulula.com parent raises USD15.8 million
Elsewhere in Africa, kulula.com parent, Comair, announced it raised ZAR124.5 million (USD15.8 million) through a fully underwritten renounceable rights offer of 69.2 million new Comair ordinary shares of ZAR1 cent each. Rights offer shares were issued at a ratio of 14 for every 100 Comair ordinary shares at a subscription price of ZAR180 cents (USD22.8 cents) per rights offer share. 64.4 million rights offer shares were subscribed for, with 4.5 million shares allocated to BB Investment Company, the offer underwriter.
In the Middle East, Air Arabia (-0.2%) slipped. The carrier received an Air Operator's Certificate (AOC) from the Egyptian Civil Aviation Authority, clearing the way for the imminent launch of JV, Air Arabia Egypt in Jun-2010. Jazeera Airways (-1.2%) was also down, as the Kuwait Stock Exchange (-0.1%) slipped.
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Selected LCCs daily share price movements (% change): 24-May-2010
Selected African and Middle Eastern airlines share price movements (% change): 24-May-2010