South African airline Comair on Monday reported a 38% fall in attributable earnings of R13,4-million for the six months ended December 31 from R21,5-million in the same period a year ago. However, this represented a turnaround on the R6,2-million loss reported for the second half of the June 2002 financial year.
Headline earnings per share amounted to 3,2 cents compared with 5,1 cents for the same period a year ago. No interim dividend was declared for the period as it is company policy to declare one dividend annually.
Revenue improved 13% to R708,4-million from R627,4-million for the corresponding period the year before, supported by passenger and yield
growth on both the kulula.com and British Airways brands, resulting in improved load factors compared to the same period last year.
However, operating profit was down 35% at R15,547-million from R23,951-million before.
The company said costs have been contained on a stronger rand, relatively stable oil prices and operating efficiencies generated by the aircraft fleet upgrade programme.
Cash generated from operations remains strong contributing towards the increase in cash from R175,6-million at the start of the financial year to R226,2-million at the reporting date.
Looking ahead, Comair said prospects for the second half are positive provided that the rand remains steady and there are no further oil price shocks.
Further revenue growth is achievable in a buoyant market provided that market capacity remains in line with demand growth, the company said. – I-Net-Bridge