JSE-listed airliner Comair on Tuesday posted a 12% dip in profit after tax to R193-million for the year to June 30.
Headline earnings a share for the year under review declined to 36.5c, from the prior year’s 47.9c, while earnings a share decreased from 47.8c in 2015 to 41.5c in 2016.
The volatility of the rand contributed to significant unrealised exchange losses of R73.9-million during the year on the back of the revaluation of a $24.8-million loan on one aircraft.
Comair’s revenue was up 1% to R5.95-billion in 2016, with overall passenger volumes climbing 6% owing to the strength of the kulula and British Airways brands.
Meanwhile, cash generated from operations during the year under review increased 31%, with Comair ending the year with a cash balance of R1.1-billion, up from R849-million in the prior year.
Operating expenses remained stable at R5.1-billion.
“The current weak economy is expected to maintain pressure on consumer spending and we will, therefore, see continued pressure on margins in the industry despite the recent growth in passenger volumes,” the company said.
Meanwhile, the upgrades to Comair’s fleet, which resulted in the delivery of three new 737-800s from Boeing during the year, are expected to offset an expected recovery in the fuel price.
“The ongoing upgrades to the fleet will continue to improve operating efficiency while, at the same time, enhancing the revenue potential per flight,” the airline said.
The group declared a dividend of 11c for the year.