https://www.engineeringnews.co.za

Comair says strategy paying off, declares R231m profit

Comair CEO Erik Venter

10th September 2013

By: Leandi Kolver

Creamer Media Deputy Editor

  

Font size: - +

JSE-listed domestic airline operator Comair has managed to achieve a significant improvement in profitability for the financial year to the end of June, declaring a headline profit of R231-million, despite the industry facing higher fuel costs.

Profit rose from R18-million in the 2012 financial year, while revenue increased 29% year-on-year to R5.38-billion.

The company, which operates kulula.com and British Airways in Southern Africa, had a cash balance of R778-million at year-end, and declared a gross cash dividend of 10c per ordinary share.

Comair, which implemented a new strategy at the end of 2011 to address high operating costs, said that the increase in turnover was mostly the result of increased ticket prices in exchange rate-related cost inflation, as well as improved inventory management.

Its new-generation Boeing 737-800 aircraft also achieved a 24% fuel saving per passenger, compared with the 737-400 aircraft that it replaced.

“The escalation of the dollar oil price since 2011 was exacerbated by the rapid devaluation of the rand against the dollar, impacting on the rand fuel price as well as various hard-currency-based maintenance, lease and distribution system costs. The fuel efficiency of our new 737-800 aircraft, as well as the termination of some dollar-based leases on aircraft that they replaced, helped to marginally reduce exposure to the currency and fuel price,” CEO Erik Venter commented.

The company added that the exit of its last remaining privately owned competitor airline helped to restore seat occupancy to prior-year levels.

Meanwhile, kulula.com had launched its East London route in March, while Comair also started British Airways flights from Johannesburg to Maputo in May, Venter said. 

“The airline’s affiliated businesses of flight training, travel product distribution and airport lounges continued to perform well and in line with the prior year. Food Directions, its catering operation, launched in March 2012, has been successful in delivering substantial cost savings while improving the airline’s control over menu flexibility and quality,” he said.

Venter further stated that, despite current industry challenges, Comair remained confident that recent capital investments had elevated the airline operator to a new level of efficiency.

“2014 will be the first full year of operation for the new B737-800s, and we look forward to the delivery of the next four aircraft in late 2015, as well as potential further aircraft orders for delivery post 2018,” he said.

“Our much improved infrastructure, as well as our reputation and ongoing focus on safety, customer service and efficiency have built a sustainable foundation to accommodate growth opportunities and ensure that Comair continues to play a major role in the Southern African aviation and travel industry,” Venter concluded.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.14 0.194s - 138pq - 3rq
Subscribe Now