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Petrol and airport charges hit 1Time

Aug 27 2010 16:03 I-Net Bridge

Company Data

1time Holdings Ltd [JSE : 1TM]

Last traded R0.15
Change R0.13
% Change 650.00%
Cumulative volume 5.69m
Market cap R42.00m

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - Airline operator 1Time Holdings [JSE:1TM] reported on Friday that headline earnings per share fell to 7 cents for the six months to June 2010 from 24.2c in the corresponding period in 2009.

Group revenue however increased by almost 6% from R613.8m to R648.5m on the back of higher passenger volumes and improved yields in 1time airline.   
   
1time said its earnings were negatively affected by an average 12% fuel price increase and a 40% increase in airport charges.
   
Over the reporting period, load factors improved from 80% to 82%, as the airline achieved further market share gains in a flat market.
   
No dividend was declared for the interim period.
   
The airline operates over 1 300 flights a month with a fleet of 12 standardised stage 3 MD80 type aircraft.
   
1Time said all eight domestic routes were performing well and the African expansion plans were on track with the Zanzibar, Livingstone and Maputo routes all showing good potential.
   
The anticompetitive agreement at Lanseria Airport expires in February 2011 and 1time's complaint currently lies with the Competition Tribunal.
   
1time has formally requested approval from Lanseria Airport to commence operations out of the airport during the first half of 2011.
   
1Time said Safair Technical incurred a R7.7m attributable after-tax loss during the period under review.
   
"The losses are attributable to a combination of excessive staff costs, the strong rand and lower than expected third party maintenance revenue," it said.
   
The Competition Commission imposed a condition on the approval of the merger between 1time and Safair Technical restricting any staff redundancies for a year.
   
As the period to which this condition relates has now expired, a cost reduction programme commenced in July 2010. The headcount was reduced from 700 at the start of the year to 582 currently while simultaneously expanding maintenance capacity and capabilities.
   
"Safair Technical is well positioned to grow third-party maintenance revenue domestically and into Africa, and expects to restore profitability in the second half of 2010 financial year on lower costs and higher revenues," 1time said.

 
 
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