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Johannesburg - Domestic and regional carrier Comair posted interim results on Tuesday, showing an increase in profitability despite a significant drop in revenue.
"There are no clear indications of an economic recovery in the local market for air travel, although we do expect South Africa to follow the first signs of recovery seen overseas," the group said when it released its interim results for the period to end-December 2009.
Comair, the operator of low cost airline kulula.com and the domestic franchise of British Airways, said it increased net profit 3% to R33m. That came off a 13% decline in revenue to R1.4bn, showing Comair benefitted significantly from the lower oil price. Headline earnings per share increased slightly to 8.1c, from 7.9c previously.
The company also increased its cash position to R252m, from R229m. The bulk of the company's revenue still came from the airline business, while its financial services and travel businesses only contributed R13.8m.
Like its competitors, Comair still refuses to divulge segmental figures for kulula.com and British Airways. "We continued to invest in our affiliated businesses with on-line travel showing good growth over the period," said Comair.
Although the company admitted passenger volumes "remained constant in a declining market", it also said it increased its market share by an unspecified amount. "We have embarked on further expansion out of Lanseria Airport to both Durban and Cape Town and were recently awarded further licences into Africa."
To take advantage of the new routes, Comair has purchased eight new Boeing B737-800 aircraft for delivery over the period 2012 to 2015. "Effective financing mechanisms are currently under consideration and shareholders will be informed thereof in due course," said Comair.
- Fin24.com
