Unaudited Interim Results for the six months ended 31 December 2010
Johannesburg, 15 February 2011: Despite the recessionary environment Comair once again delivered a feisty performance in the six months under review, beating off continued airport costs increases and an escalating fuel price.
With a 27% increase in earnings per share to 10.3 cents (8.1 cents in the previous year), Comair’s industry leading brands have shown resistance to inflationary cost increases and a decline in average ticket prices across the industry.
Turnover increased by 24% to almost R1,8 billion in the six months under review, with passenger volumes increasing to record levels. These volumes were achieved by using larger, newer, more efficient Boeing 737-800 aircraft and increasing utilization and productivity across the company.
Erik Venter, joint CEO of Comair Ltd, says state owned service providers ACSA (Airports Company of South Africa) and ATNS (Air Traffic Navigation Services) upped their rates by between 30% and 40% in the period under review. “This remains one of the greatest challenges to the growth of South African airline industry,” he says.
Comair Ltd progressed well with its expansion into Africa, with the successful introduction of flights to Dar es Salaam. “We intend to launch two new routes into Africa in the next six months,” Venter confirmed.
“We are very proud of this exciting phase in Comair’s ongoing fleet upgrade programme,” says Gidon Novick, joint CEO of Comair Ltd. “We’re looking forward to bringing our customers improved levels of reliability and comfort, while at the same time entrenching our cost leadership position in the industry,” Novick says.
“With the likelihood of oil price remaining above $100 per barrel, the roll-out of the new aircraft is a key component in managing costs,” he says.
Both the British Airways and kulula.com brands performed well and were rated the number one and two airlines among business travelers in South Africa in the annual Sunday Times survey. “We will continue to focus on streamlining and improving our customers’ experiences with us,” Novick says.
To this end, the roll-out of our SLOW lounges at the major airports countrywide has been very well received by frequent travelers. “Our SLOW lounge concept and facilities have been ranked amongst the best in the word by our business travelers in particular. We are looking forward to extending the SLOW brand into other locations this year,” Novick says.
Additional offerings include improved on-line customer services complete with home check-in, the kulula.mobi application, and the improved self-service functionality at the airports.
Earlier in February Comair Ltd opened its new R100-million Flight Training Centre and Simulator in Rhodesfield, Johannesburg. This new training is the most advanced on the African continent and handles Comair’s training requirements as well the training needs of 30 international airlines.
For further information, please contact:
Heidi Brauer (Executive Manager: Group Marketing)
Tel: 011 281 5877
Cell: 082 557 8376
Pheliswa Mayekiso (Account Manager)
Tel: 021 469 1568
Cell: 084 486 0502