Comair profits take off

Johannesburg - Airline operator Comair [JSE:COM] on Tuesday announced diluted headline earnings per share of 10.2 cents for the six months ended December 2010, from 8.1c previously.

It noted diluted earnings per share of 10.2c from 8.1c in 2009.

Revenue climbed to R1.756bn from R1.415bn previously, while operating profit before depreciation increased to R149m, against R118m earlier.

"The team at Comair delivered a good performance, despite the recessionary environment and tariff increases of between 30% and 40% from the state-owned service providers to the industry.

"Without increasing the number of scheduled aircraft, our capacity increased by 26% through improved fleet utilisation and the introduction of three larger, more efficient Boeing 737-800 aircraft," it said.

Comair said that during the period it invested in a new flight simulator facility and made deposits totalling R110m for its new aircraft for delivery from 2012.

"Our expansion into Africa progressed with the successful introduction of flights to Dar es Salaam. The roll-out of our SLOW lounges at the major airports countrywide has been very well received by business travellers, who have ranked the facilities among the best in the world," it said.

The group said its focus remained on improving customer service while driving further efficiencies. The replacement of three Boeing 737-200s with new-generation 737-800s signified the next phase in Comair's fleet upgrade programme.

"We expect that the price of oil will remain above $100 per barrel, and the new aircraft are the key component in managing this cost. We intend to launch two further routes into Africa in the next six months.

"The potential of an escalating fuel price and further significant increases in airport tariffs remain the greatest challenges to the growth of air travel in SA," it concluded.

No interim dividends were declared for the period.