Wednesday, September 16, 2009 COMAIR has announced “good financial results in difficult trading conditions” for the year ending June 30.
“This extends our airline industry world record to 64 consecutive years of operating profitability,” the group said in a statement.
The group said that during the year it experienced “extreme” volatility on the cost side, as well as softer demand as a result of the recession.
The oil price peaking at a record US$147 per barrel also constrained profits.
Improvements in operating efficiency as well as a strong performance from business extensions contributed positively to its performance.
Turnover growth of 13% was mainly attributed to higher ticket prices in the first half as a result of the high oil price at the time.
Volumes remained steady even though the overall market declined by 10%.
“The 27% growth in headline earning per share is encouraging, but still short of our own targets for the business.”
The group continued to say that the fleet upgrade programme of the past few years has largely contained the impact of high jet fuel costs.
“We anticipate that with the recovery of the global economy, commodity prices will once again rise, and we are therefore proceeding with the next phase of our fleet replacement programme.”
The group also achieved an overall on-time performance of 82%.
In conclusion the group said that airline earnings will continue to be impacted by the volatile fuel price, anti-competitive behaviour from state-funded airlines and the recessionary environment.