Comair records 'strong profit growth in tough trading conditions' in FY2016/17

Comair (South Africa) reported (12-Sep-2017) "strong profit growth in tough trading conditions" during FY2016/17, ended 30-Jun-2017. Cash generated by operations increased 28% year-on-year. The company's non airline businesses, including travel, pilot and crew training, lounges and catering, contributed 20% of earnings. The carrier noted the absence of extraordinary costs recorded in FY2015/16, which arose from losses on oil hedges and revaluation of a US dollar based aircraft loan. CEO Erik Venter said: "In the continued absence of meaningful GDP growth in South Africa, our domestic airline-passenger market has yet to expand into its surplus seat capacity, which constrains industry occupancy levels at below the global average". Mr Venter added: "Despite inflationary pressure and a 5% increase in the rand price of fuel, our costs remained well contained with a 1% increase overall. Our new Boeing 737-800 aircraft continue to contribute positively towards this efficiency through their lower fuel burn and maintenance demands". The weak economy is expected to maintain pressure on consumer spending, resulting in "continued pressure on margins, particularly in the airline industry, combined with a possible decline in passenger volumes", according to Mr Venter. He commented: "Comair is well positioned to operate in these conditions, with strong brands, dedicated staff, effective equipment, an efficient cost base and strong cash reserves". [more - original PR] [more - original PR - II]