1time turns a profit

Johannesburg - Airline group 1time Holdings (1TM) on Monday reported that its interim headline earnings per share for the period ended June 2009 were at 24.22c compared with a loss of 3.01c in 2008.

Operating profit was at R65.093m from the loss of R5.448m reported before.

Group revenue increased by 35% to R613.9m from R455.4m before.

1time airline performed particularly well, growing revenue by 20% to R508m and passengers by 12%.

The passenger growth was achieved despite the overall domestic travel market declining by an estimated 10% for the period, leading to further market share gains for the airline, the group said.

The group said the improved margins had been underpinned by the average 37% decrease in rand jet fuel prices for the period and a focused successful campaign to entice corporate travellers away from the higher-priced legacy airlines.

Looking ahead, the group said while trading conditions in the domestic air travel market were expected to be tough in the second half, prospects for the airline remained positive.

"We expect revenue growth for the full year on higher passenger volumes despite pressure on yields as competitors attempt to regain lost market share. Margins will be largely determined by rand jet fuel prices in the second half.

"For the aircraft maintenance business we expect to consolidate the merger during the second half of the year."

The group said revenue growth was expected to continue with high third party demand for aircraft maintenance services.

Margins will however be largely dependent on the average rand/dollar exchange rate achieved for the period, it said.

- I-Net Bridge