Higher passenger numbers and high third-party demand for aircraft maintenance services would boost South African aviation group, 1time Holdings’, revenues, in the second half of the year, the airline forecast on Monday.

The company, led by CEO Glenn Orsmond, increased its headline earnings to R50,9-million in the six months ended June 30, 2009, compared with a headline loss of R6,3-million the year before.

Its headline earnings a share improved to 24,22c a share in the six months, compared with a loss a share of 3c a share the year before, while revenues were up by 35% to R613,9-million, compared with R455,4-million the year before.

The 1time airline business had grown revenues by 20% to R508-million, while passenger numbers were up by 12%, as a result of the overall domestic travel market declining by about 10% in the six months, which led to further market share gains for the airline.

The airline, which already operated a fleet of ten standard stage III MD80-type aircraft operating in excess of 1 200 flights a month to nine destinations, would acquire new aircraft in the second half of the year to satisfy demand for its route to Livingstone, in Zambia.

Meanwhile, aircraft maintenance revenues had increased to R151,9-million in the six months, up 137% on the R64,1-million achieved the year before.

The division’s operating margins had been negatively impacted on by merger costs and a strong rand, with the maintenance revenues being largely dollar-denominated.

1time’s Aeronexus Technical had been merged into Safair Technical in April, when a 72% stake in the latter was acquired by 1time.

Meanwhile, the group was also expecting to see revenue growth from its charter's business in the 2010 financial year.

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