Cape Town - Comair is currently finalising its results for the six months ended 31 December 2016 and advised shareholders on Wednesday that it expects earnings per share (EPS) and headline earnings per share (Heps) for the six months ended 31 December 2016 to be at least 20% higher relative to the prior comparative period.
The expected increase is primarily due to the strengthening of the rand against the dollar, resulting in the reversal of unrealised translation losses on a dollar denominated aircraft loan amounting to R98m.
Furthermore, all loss making open oil hedges had matured by 31 December 2015 and no further hedges were entered into.
In a trading statement Comair said there is currently insufficient certainty to enable the group to provide specific guidance on the extent of the expected increase in both Heps and EPS. It is anticipated that Comair will publish a more detailed trading statement in due course.
The financial information on which this trading statement is based has not been reviewed or reported on by the company’s auditors.
Despite declining revenue in the domestic airline market, exacerbated by the weak economy, Comair continued profitability for the financial year ending June 30 2016.
In 2015 Comair celebrated its 70th anniversary of operations, the 20th anniversary of its franchise agreement with British Airways and the 15th birthday of kulula.com.
CEO Erik Venter told Fin24 at the time that Comair is the only SA airline to return a profit for every year of its operation - a feat achieved "without the luxury of state bailouts".
Venter explained that the local aviation industry is under strain because of the weak SA economy and there still being too much capacity.
Read Fin24's top stories trending on Twitter:
Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.
24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.