Comair revenue up 5% despite domestic market slowdown - CNBC Africa

Comair revenue up 5% despite domestic market slowdown

Earnings

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Comair revenue up 5%. PHOTO: Kulula

The revenue increase from 2.96 billion rand to 3.13 billion rand is attributable to a three per cent increase in the average yield and a two per cent growth in occupancy for the six months ended 31 December 2014.

Earnings per share (EPS) and headline EPS rose from 34.3 cents to 37.6 cents for the period.

[DATA COM:Comair LTD.] said that while the declining oil price benefitted the group, the nine per cent average weakening of the US dollar- rand exchange rate affected 48 per cent of costs.

Also, the cash balance for the company stood at 688 million rand in December 2014 after 149 million rand was used to purchase five Boeing 737-400’s while 73 million rand was used for early settlement of aircraft and simulator funding.

(READ MORE: Comair revenue soars at 23% due to increased capacity)

Comair explained that the domestic passenger market remains below the 2008 peak volume and it does not anticipate any near-term recover in local consumer spending.

“While -the decline in the oil price has provided welcome relief, we are of the view that it will increase in the second half of the year. The current swap price in the market for the 12 months ahead is averaging 65 to 75 US dollars per barrel, indicating market expectations of a recovery in the price of oil,” added the airline.

“The impact of the lower fuel price is anticipated to equal approximately 3 per cent of total cost for the full financial year and we are seeing related downward pressure on ticket prices.”

(READ MORE: Improved yields grow Comair's turnover)

The group believes that the ongoing upgrades to its fleet remains the best solution to the expected recovery in the fuel price along with improved customer propositions and advanced technology-driven operating processes to maintain a healthy lead over competitors.

“Our travel business, flight training facility, catering business and airport lounges also show opportunities for further growth,” continued the statement. 

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