adminturnaround programme begins bearing fruit.
During the interim period, revenue grew by 20 percent to R2,41 billion due to the fuel surcharge on British Airways tickets and improved pricing capability for kulula which was made possible by its new inventory management system.
In addition its four new, larger Boeing 737-800s introduced during the period contributed to increased revenue per flight, while at the same time improving fuel efficiency and accommodating an oil price above US$110 per barrel. The increased overall revenue was achieved despite a 6 percent decline in the total domestic passenger market.
Profit after tax grew to R79,1m for the period after a loss of R34,17m previously. Diluted headline earnings per share increased to US16,4c after a loss of US4,9c per share for the corresponding period a year ago.
CEO of Comair Erik Venter commented that its re-engineering initiatives, which already delivered results in the second half of the 2012 financial year, continued to pay off, but more importantly its new state-of-the-art reservations and logistics system ensured improved revenue through enhanced inventory management practices.
“We are particularly proud of the fact that the improvement in profitability was achieved without the retrenchment of any staff, largely as result of their own commitment towards implementing the changes required to turn the business around,” Venter said.
He was upbeat at the firm’s performance in the next six months. During the period, Comair does not expect an increase in local consumer spending and market volumes will be flat.
Ticket prices will remain at current levels so as to recover the escalating costs brought about by the devalued rand which impacts on fuel price as well as on US dollar-based technical services.
“We are attentively optimistic of further improvements to profitability and cash generation in the second half of the 2013 financial year, particularly as Kulula flights from Johannesburg (OR Tambo) to East London will commence from March 1, and British Airways flights from Johannesburg (OR Tambo) to Maputo from May onwards.
“There are also further growth opportunities for our travel business, flight training facility, catering business and airport lounges in the year ahead,” Venter concluded. – CAJ News.
Online Reporter